El Nino is characterised by warmer surface temperatures in the central Pacific Ocean. The warmer water has a big effect on climates in many parts of the world and increases global temperatures.
Meteorologists at Weather Services International predict El Nino will come into effect toward the middle of the year. The last El Nino occurred in 2009-10.
Since then, the Pacific has been much cooler, experiencing the reverse La Nina pattern.
It is predicted the warmer ocean water will result in less tropical and subtropical flooding in major coal exporting countries such as Australia and throughout the Latin American region.
Simultaneously, the major consumption and import areas such as the UK, Europe and Asia will enter a summer period of low demand, causing coal prices to drop further in coming months.
Imports into Europe are averaging $US77 ($A83) a tonne while Australian cargoes bound for Asia are trading at an average of $73 a tonne.
An unusually mild winter has decimated Europe’s coal demand and prices were predicted to remain stagnant as the weather heats up.
