Queensland-based Macarthur Coal Limited (ASX:MCM) has seen profits tripling in fiscal 2011 as the higher demand for steel-grade coal grows and supply situation tightens further.

At the conference today, he also said there was an expectation of improved conditions in the March 2011 quarter for metallurgical coal sale prices.

Spot coal prices will provide the boost to the seasonal declines this month, officials cited.

Australia's Macarthur Coal is still the world's largest maker of low volatile pulverized injection coal, used in steel making. Deliveries to merging markets China and India will escalate in the next six months.

It said its first-half net profit after tax was forecast to be in the range of $115 million to $125 million, based on 2.5 to 2.7 million tonnes of sales. In fiscal year, 2009-10 Macarthur made a first half profit of $39.6 million, and made a full year profit of $125.1 million.

''We expect ageing coke ovens and blast furnace expansions to create stronger differential growth for LV PCI,'' a presentation to a conference by Macarthur chief financial officer Graham Yerbury said.

Since March 2009, deliveries of coking coal used in steel production had been steady and improving.

Macarthur shares were trading higher at $11.45 as of 3pm in Sydney.