For the July 2010 to September 2010 quarter, the weighted average free on board cost US$FOB for new contract prices of Curragh metallurgical coal (hard coking, semi-hard coking and PCI) will increase to $US225 per tonne FOB Queensland.
“The company was satisfied with the result of its negotiations for Curragh’s hard coking coal,” Wesfarmers Resources managing director Stewart Butel said.
Approximately 75% of Curragh’s contracted tonnage has moved to a quarterly pricing mechanism.
Earlier this month BHP Billiton landed a 12.5% quarterly increase in coking coal prices with Japanese steelmakers for the September quarter, according to various reports.
Sources close to the deals told Dow Jones Newswires the unnamed major Japanese steelmakers will pay $US225 a tonne/t for the upcoming quarter.
BHP and Wesfarmers settled June quarterly contracts for the commodity at $200/t, with these prices up 55% from the annual benchmark struck last year.
Quarterly contracts started up in the past few months but not all coal producers are settling on a quarterly basis.
Wesfarmers’ shares were down by 3c to $29.16 in morning trade.
