Demand from the Asian market is pushing prices for both thermal and coking coal up and, according to analysts, the trend is set to continue.

So much so, a study commissioned by the Minerals Council of Australia predicts a 400 million tonne increase in annual demand by 2030 — double Australia's total thermal coal export level in 2017.

As demand for Australian coal escalates, an horizon dotted with coal ships waiting to enter Newcastle Harbour — the world's largest coal port — is a typical sight.

Executive director for coal Greg Evans said the increase in demand built on last year's market turnaround.

"The 2017 year was actually a record year for coal exports, some $57 billion," he said.

The increase in demand has been attributed to infrastructure building programs throughout Asia, along with increased industrialisation and urbanisation.

Mr Evans said that went hand-in-hand with the need for affordable energy.

"That's the economic expansion story which is happening in Asia. It's happening from Pakistan through to Vietnam, with economic development and population growth," he said.

"Breaking it down and looking at where demand is coming from, there will still be continued demand from those North Asian countries which have been the bedrock of the Australian coal industry in terms of Korea, China and Japan, but what's interesting now is that demand is developing in South East Asia, in countries such as Malaysia, Vietnam and Thailand.

"The question is for Australia, to what extent can we participate in the benefit of that higher import demand?"

Coal loaders at the Port of Newcastle. ( Supplied: Port Waratah Coal Services )

Ship queues at Australian coal ports

Graph showing the Newcastle thermal coal price in US dollars per metric tonne, free on board basis. ( Supplied: S&P Global Platts )

The increase in demand comes after the market dimmed in 2013, sending shockwaves through mining communities in New South Wales and Queensland.

Senior coal analyst with S&P Global Platts Mike Copper said prices hit rock bottom in 2016.

"We saw US$40 [per metric tonne] for Newcastle, and for Queensland coking coal it was about US$80 per metric tonne," he said.

But that price doldrum has now recovered.

Graph showing thermal coal prices at Newcastle Port, in US dollars per metric tonne free on board basis, since January 2017. ( Supplied: S&P Global Platts )

"For the coking coal market, prices are around US$200 per tonne coming out of ports in Queensland and for Newcastle Port, the grade that goes to Japan, thermal coal is trading at US$120 per metric tonne – that's the highest since the post Fukushima accident in 2011," Mr Cooper said.

As well as the rising dollar figure, the stark demand for coal has been illustrated by the high number of ships waiting to load at Australian ports.

"We haven't seen queues at these levels for several years," Mr Cooper said.

"Newcastle Port has had queues going up to about 22 ships, all waiting to get coal delivered down to the port.

"In Queensland, Dalrymple Bay Terminal, Gladstone Port, they've had queues up in the double figures."

Housing market in mining communities on the upswing

Renewed demand for Australian coal has had flow-on benefits for rural towns in the mining supply chain, including Muswellbrook on the Hunter coalfields.

Local real estate agent Grant Jupe said it was a welcome boost for the region's property market.

"Rentals are going very, very strong and vacancy rates are pretty much non-existent," he said.

Cars drive along the main street of Muswellbrook, NSW. ( ABC Newcastle: Robert Virtue )

"During the lull that we did experience a few years ago, there was over 400 vacant homes in town, so it has taken time for that to turn around, but we're definitely at that point now.

"I think a lot people sat tight seeing what would happen, and now buyers are starting to get back into the market again."