February 4, 2008 (LPAC)--Coal prices jumped 25 percent over the past week in trading centers in South Africa and Australia, after rising 73 percent globally in 2006. The price for coal rose from $97 a ton for the week ended Jan. 25 to $111 a ton for the week ended Feb. 1 on the Newcastle market and from $93 a ton to $116 a ton in Richards' Bay, both in South Africa, and today the price for coal for March delivery hit $130 a ton.

Other commodities are in the same soaring spiral, including agricultural and metals. For example, as of March 1, ArcelorMittal South Africa just announced that it is raising the price of its various basic steel products by 5-12%. China steel has increased its prices by $65/ton recently; and projections are that steel prices could increase by another $100 this Summer.

Until 2003-4 steel prices were in the $400 a ton range, then rose to $700 a ton, and now are taking off. A steel industry websight (www.steelonthenet.com) has chronicled the price segments included in producing a ton of steel. Since the beginning of 2005, through December, 2007, iron ore is up almost 30%; thermal coal has almost doubled, and coking (higher quality) coal is up 20%; natural gas is up about 50%, and electricity is up over 20%.