Coal news and updates

Anglo American Q2 offers at $116, BHP’s at $110

March 17: Anglo American has offered Japanese customers Q2 (April-June) 2015 loadings of premium low-vol coking coal at $116 per ton FOB Australia, while BHP Billiton Mitsubishi Alliance offered $110 per ton FOB for April loadings, according to industry sources.

However, these prices are lower than Q1 2015 settlements at $117 per ton FOB, sources said.

Sources expressed surprise at the gap between the two miners’ latest offers. BMA’s aggressive offer was an attempt by the miner to gain market share in Japan. This may be true as China is recently reducing imports.

However, both offers remained above the latest clearing spot prices, which are moving around $102-105 per ton FOB Australia, depending on the vessel size used.

Anglo American’s offer was for its flagship premium hard coking coal German Creek, while BMA’s offers were for Peak Downs and Saraji.