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

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September 2010 | Steel Raw Materials


Japanese mills finalise some contracts with Australian suppliers: Coke and coking coal analysis


The market in China especially has been quiet. The Chinese mainland observed the Mid-Autumn Festival last week during 22-24 September.

Several Japanese steel mills have finalised the third quarter semi-soft coking coal contracts. Several blast furnace steel producers fixed the semi-soft coking coal prices loaded at Newcastle with Australian suppliers at $138-140/tonne FOB. This compares with the a second quarter of $172 FOB, and so represents a $32-34/tonne reduction quarter-on-quarter or minus 18.6-19.8%

However, negotiations with the two largest suppliers of semi-soft coking coal loaded at Newcastle - Xstrata and Rio Tinto - have yet to be settled, as both suppliers oppose such a steep price reduction of semi-soft coking coal.

The negotiations for met coal have progressed further. Both hard coking coal and low volatile (LV) PCI coal have already been ended in agreement with the new prices set at $209/tonne FOB for high quality hard coking coal and $147 FOB for LV PCI coal both from Queensland. These mean a $16/tonne or 7.1% reduction and $33/tonne...

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