Japan Coking Coal Buy Price to Rise in July-September

Japanese integrated steel makers are under talk with offshore miners for coking coal price negotiation for July-September. According to Japanese industry source, a major supplier apparently offers FOB US$ 230 per tonne for premium coking coal. The price is US$ 20 higher than around US$ 210 for April-June. The price is pressured by tight supply due to production loss at BHP Billiton Mitsubishi Alliance (BMA) under labor dispute.

Japanese integrated steel makers started the negotiation with miners in Australia and Canada. The quarterly price could increase for the first time in 5 quarters after the price decreased for 4 quarters in a row.

According to Japanese source, BMA continues labor negotiation with strike on again to impact on the production. BMA declared force majeure for the coking coal shipment in April. The worldwide premium coking coal supply gets tighter due to production cut at Peak Downs and Saraji mines.

Iron ore quarterly price in July-September would increase for the first time in 5 quarters for Japanese buyers based on averaged spot market price in March-May. Iron making raw materials price is in marginal increase phase both for iron ore and coking coal while the price adjusted the level from historical high for a year.