According to a Reuters report, the two coal majors agreed to $US70-72 a tonne with Japanese utility Chubu Electric for the 2009-10 Japanese financial year, beginning April 1.

The contract price was down on last year’s benchmark of $125/t, but above current spot prices which sunk to a new low last week of $61.70/t.

With the two majors settling their contracts, contracts by other Australian coal producers with Japanese buyers are expected to be at a similar level.

Media reports have also emerged that several Australian coal producers have settled pulverised coal-injection coal contracts at $US90/t with South Korea’s largest steelmaker, Posco.

Macquarie analysts, citing a Platt’s report, said the PCI contracts were down 63% from 2008 prices of $US240-245/t, Bloomberg reported.

The news service also noted 2 million tonnes of hard coking coal was sold on the spot market to China at $US140/t free-on-board.