UPDATE 1-More US coal moving to Asia - market sources

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By Bruce Nichols

HOUSTON, July 7 (Reuters) - More U.S. coal is moving to Asia, including the first Utah coal and the first whole cargo of Powder River Basin coal through Westshore Terminals at Vancouver, Canada, market sources said Monday.

Utah coal has never before moved through Westshore, the largest dry bulk terminal on North America's West Coast, and Powder River Basin has shipped there only as part of a blend, said Denis Horgan, terminal general manager.

Coal analysts have been watching for increased movement of U.S. coal to Asia as prices soar in a booming, coal-hungry market. Asian demand coupled with delivery problems in exporting countries has made U.S. coal attractive.

"It's because there's such a shortage in the world market now," said John Hanou, vice president of Hill & Associates, a coal consultancy. "It tells you how desperate people are."

David Khani, manager of energy research at Friedman, Billings, Ramsey investment bank, predicted more cargoes will move from unusual origins to non-traditional destinations. "We're seeing inventories around the world depleted," he said.

Prices for steam or power-plant-grade coals have moved past $140, from less than $50 early last year, while metallurgical or steel-making coals have sold for well over $300 a ton, triple prices of last year.

The prices of the deals moving through Westshore were not disclosed, but PRB is sub-bituminous and lower in heat content than bituminous coals, so it sells for around $10 a ton in the United States.