Japanese integrated steel makers concluded the coal purchase price negotiation for fiscal 2007 starting April except for Chinese coal. Nippon Steel agreed with Australian miners to increase the price by US$ 6-7 to FOB US$ 60-65 per tonne for semi-coking coal. JFE Steel accepted around 10% higher price at between US$ 60-65. Some negotiation for semi-coking coal was delayed due to longer talk for thermal coal. Japanese major steels’ purchase prices are different for semi-coking coal due to different timing of agreement and different preference of coal brands. Japanese steel keep discussion with Chinese coal supplier for annual purchase price for coking coal. They could face tough negotiation under tight supply of thermal coal and coking coal due to lower export from China, congestion of port in Australia and shipment trouble in Canada.
Japan Steel Scrap Composite Prices (Sangyo Press)
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