Asciano Limited
(ASX:AIO) has enjoyed a solid increase in Queensland coal haulage over the past two months following a drop in demand, however remains cautious of significant market volatility.
The rail company concedes the erratic market conditions make short term forecasts very difficult.
CEO John Mullen says coal demand in Queensland had been running at 300 per cent below its expected levels before abruptly posting a record boost, signifying the difficult market conditions.
David Irwin, Asciano’s Pacific National Coal Division chief, believes the recent boost in demand is due to more buying opportunity occurring following a slight turn in the market, with producers vying to boost their production and sales levels.
Asciano generated a net profit of $242.7 million for the 2012 financial year.
