Amid the ongoing discussions among the steel mills in Japan on fixing the third quarter coal contract price, one of the major Japanese steel makers was heard to have already negotiated with a major Australian coal miner a contract price of $120/MT FoB Australia for Semi Soft Coal for Q3 2017.
While, another steel producer in Japan has negotiated a Q3 2017 contract price for the coal at a lower price of USD 107/MT FoB Australia.
The difference between the two contract prices aroused due to the timing of the negotiations, among other factors, according to market participants.
The prices for the third quarter are in sync with the prevailing market conditions, which is sustaining stronger demand and higher prices. The Q2 2017 benchmark contract price was higher at USD 126/MT FoB Australia.
In the meantime, negotiations are going on between Japanese steel mills and Australian sellers for the contact prices for Pulverised Coal Injection (PCI) cargoes for Q4 2017. One steel producer was learnt to have negotiated a price of USD 115/MT FoB Australia.
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