Arch Coal sees global coal supply deficit

NEW ORLEANS, April 7 (Reuters) - Global coal supply will fall short by up to 35 million tons in 2008 and the deficit is set to grow going forward, ensuring that prices remain strong, the CEO of coal miner Arch Coal Inc (ACI.N) said on Monday.

"We estimate that global supply of coal will be short between 25 and 35 million tons this year," Steve Leer told analysts at an energy conference.

The estimate differs from one given in March, in which Leer said Arch Coal estimated the world would be between 30 and 40 million tons short of coal this year.

"We will end up using more and more coal going forward," he told analysts at the April 6-10 Howard Weil Energy Conference in New Orleans. He said very strong international markets were leading a strong domestic market.