In 2005, hard coking coal prices were set at $US125 per tonne regardless of quality but a price differential is emerging in this year’s negotiations between high quality and medium and low-grade coking coal.
The Tex Report said high quality hard coking coal prices have been reduced to $US115/t while prices for medium and low-grade hard coking coal are settling around $US105/t to $US110/t. This is up to 16 percent down on last year’s record price.
Talks between other coking coal suppliers and steel producers are still continuing with Australian and Canadian suppliers going to Japan next week for negotiations.
The Tex noted it would be interesting to see whether Canada's Elk Valley Coal decides to follow BMA’s lead and settle at a similar pricing structure in relation to quality.
Elk Valley is yet to negotiate with Japanese steelmakers.
