US coal giant Peabody Energy projects 2015 metallurgical coal import demand increases will outpace supply growth for the first time since 2011.

It said "We would anticipate seeing catalysts for market improvement, including stable seaborne metallurgical supply."

Peabody projects Chinese import growth to resume over time as domestic production is rationalized and new infrastructure projects are advanced. Peabody expects that seaborne met coal demand will rise 10-15% over the next three years. Meanwhile, met coal supply is expected to be flat in 2015 with modest Australian growth offset by North American cutbacks

It said “Seaborne metallurgical coal supply is expected to be flat in 2015 as modest Australian growth is offset by North American cutbacks. Approximately 25 million tonnes of seaborne metallurgical production cutbacks have been announced over the last 12 months, with an estimated 15 million tonnes yet to be realized by mid-2015.”

The first quarter 2015 metallurgical coal benchmark for high-quality low-vol hard coking coal settled at USD 117 per tonne, down USD 2 per tonne from the prior-quarter price. The mid- vol hard coking coal price increased to USD 116.50 and the benchmark low-vol PCI settled at rollover pricing of USD 99 per tonne