Japanese Steel Makers’ Coal Price Negotiation Re-starts with Major Suppliers

Japanese integrated steel makers’ price negotiation for coal is likely to begin in earnest with coal suppliers for the shipping in fiscal 2008 at the ended of March 2009. The negotiation broke off due to heavy rain in Australian mine. World biggest supplier, BHP Billiton Mitsubishi Alliance (BMA) arrives in Japan in this week. BMA’s mine seems to recover, and to be able to start price negotiation. Spot price for a coal is increasing to over US$ 350 or about 35,900 yen per tonne when the supply and demand for coal is extremely tight in the whole world. Their price negotiation is likely to become hard.Their price negotiation had broken off for a month. Major suppliers’ coal shipping is becoming shortage. Steel makers in the world are moving to purchase from other coal suppliers. Spot coal price of Australia, USA and China increased to over US$ 350 per tonne. Chinese cokes price reached to FOB US$ 530 per tonne.It is certain that first-class coking coal price becomes largely higher than the price for shipping in fiscal 2007 of FOB US$ 98.