Japanese steel makers: Nippon Steel and Sumitomo Metal Corporation have settled with the mining major, Glencore, with a contact price for Coking Coal at USD 285/MT FoB Australia for the Jan-Mar’17 period, according to the latest inputs received.The contract price for the Q1 2017 is higher by USD 85/MT than that for Q4 2016.
The contract price pertains to Glencore’s flagship Premium Mid Vol variants: Oaky Creek and Oaky North.
The level of the contract price is expected to be good for Coking Coal miners in Australia as spot prices have started falling due to improvement in supply. The recent spot price of the Premium HCC has fallen considerably lower to USD 272/MT FoB Australia than the price at around USD 310/MT FoB in the fourth week of Nov’16.
On the other hand, the contract price is not going to impact the Indian steel makers as they purchase Coking Coal on the basis of the prevailing indexes.
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