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Forecasts and market analysis based on price assessments from Fastmarkets MB and Fastmarkets AMM

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March 2010 | Steel Raw Materials


BHP announces quarterly coking coal contract agreement: Coke and Coking Coal Highlights


Japanese mills resort to importing Chinese coke, despite the export levy on such material, in order to build up emergency supplies while coking coal contract talks were proceeding.

BHP Billiton has announced that it has agreed terms with many of its coking coal customers, settling with mills in Europe, China, India and Japan a first quarter price (commencing 1st April) of $200/tonne fob Australia. Despite strong opposition to the new quarterly pricing agreements on the part of mills, rising spot market coking coal and coke prices on the international markets has swung the advantage back into the miners favour.

In Japan, for example, MBR expected Japanese mills to attempt to negotiate down the $240/tonne yearly price offered by BHP Billiton Mitsubishi Alliance (BMA) as they maintained opposition to quarterly agreements. However, we understand that mills have been finding it difficult to procure sufficient coking coal volumes on the spot markets due to supply restrictions in Queensland after weeks of heavy rains.

Japanese mills even resorted to importing Chinese coke, despite...

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