Coal news and updates

Japan steelmaker sets Q4 contract for coking coal at $152/ton

September 23: Japanese steelmaker Nippon Steel & Sumitomo Metal Corp set its October-December (Q4) contract price for prime hard low-vol coking coals with Australian miners such as BHP-Billiton Mitsubishi Alliance and Anglo American at $152 per ton FOB, up by $7 from the third quarter (Q3) for prime hard grade coal, an industry source said.

The price covers premium land low-vols such as BMA's Peak Downs or Saraji and Anglo American's German Creek coking coal.

For premium mid-vols such as BMA's Goonyella and Anglo American's Moranbah North HCC, the deal was done at $148 per ton FOB, up $6 per ton from July-September.

As per reports, no PCI deal has been done yet. Posco, the South Korean steelmaker that usually negotiates the PCI settlement with Anglo American, was away for a public holiday.

The settlement arrangement between Nippon Steel and the Australian miners is expected to be followed by other major buyers and sellers elsewhere.