Japan Major Steels, BMA Agree US$ 200/t Coking Coal Price for April-June

Japanese major integrated steel makers including Nippon Steel and JFE Steel agreed with BHP Billiton Mitsubishi Alliance (BMA) to increase high grade coking coal price to US$ 200 per tonne for April-June shipment, which is 55% higher than annual contract price for fiscal 2009 ending March 2010. They failed to agree the new price system including quarterly price adjustment while BMA seeks shorter price adjustment system and Japanese steel makers insist on annual fixed price. Japanese steel makers accepted the April-June price to secure the supply for the period while they continue the negotiation for price and price system in and after July.

Japanese steel makers didn’t accept quarterly price system and keep negotiation for price in and after July including price system. Japanese steel makers accepted the April-June price as compromise to secure the shipment in April-June and to arrange transport vessels.

Japanese steel makers will insist on stable price for basic material of steel products and for the change factor of major iron making raw materials. The makers seek acceptable annual contract price offer to coking coal miners other than BMA at coming negotiation while the makers will negotiate as such for soft coking coal and pulverized coal injection coal.

BMA seeks new price system with quarterly price adjustment or mixed with half volume for fixed half year or annual price while the price was annual fixed price traditionally. However, BMA didn’t offer half and annual price in February when the firm offered US$ 200 per tonne of quarterly price.