DJ MARKET TALK: ML Tips 2008 Thermal Coal At US$135/Ton,Mkt Tight 0527 GMT [Dow Jones] Merrill Lynch maintains thermal spot price forecast at US$135/ton for 2008 Japanese financial year despite settlement of some contracts at US$125; says higher price reflects true average settlement level more accurately; including index sales, market still looking tight. China hasn't yet resolved standoff between power generators, coal producers on rising coal prices; government keen to keep lid on inflation, but decision to ease requirements for restart of small mines points to pressures on power industries, says Merrill.
Tips best leverage to coal price from Xstrata (XTA.LN), Bumi Resources (BUMI.JK), Gloucester Coal (GCL.AU).
