“The South Korean buyers now hope to achieve purchase prices of $US50-51 per tonne, while Australian exporters are holding out for around $US53. A reversal of direction in the spot market is lending support to the suppliers’ cause,” AME said.

During Australian-Japanese thermal negotiations, Japanese utilities concluded prices in the range of $US52-54 free on board for fiscal 2005, with lower prices achieved towards the end of the negotiating period, during which spot market prices were declining.

AME said price negotiations for long-term contract thermal coal shipments from China to Japan in JFY2005 will be resumed in Tokyo towards the middle of April. Negotiations were suspended in early March with agreement only on tonnage – 10.45Mt.