Peabody Energy Corp. (BTU) President Rick Navarre said Wednesday a rebound in U.S. coal markets will lag behind a return in Asian markets.

Speaking at a coal conference, Navarre said he expects a strong second half of the year in the Pacific market, while the Atlantic market will be down for the year.

The Pacific market "will dominate what is happening in the overall global markets," Navarre said, with China and India driving demand.

Although U.S. coal prices have dropped sharply in the last year, he said current spot prices are "unsustainable" and producers' response to reduce supplies has been unprecedented.

-By Mark Peters, Dow Jones Newswires; 212-416-2457; mark.peters@dowjones.com