Singapore (Platts)--19Mar2015/206 am EDT/606 GMT
Anglo American has become the latest major metallurgical coal producer to agree to a Q2 term price of $109.50/mt FOB with Japanese steelmakers this week, market sources said, effectively sealing this price as a coking coal benchmark reference for other miners to follow.
The price is $7.50/mt lower than the Q1 2015 Asian benchmark of $117/mt FOB.
A spokeswoman for Anglo American, in Brisbane, would not comment on pricing issues.
There had been some doubt as to whether Anglo American would follow the same price level, given the unclear circumstances of the first few settlements by Rio Tinto and Peabody, and given the fact that Anglo American's initial offer had been substantially higher, at $116/mt.
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A number of market participants believe that Rio Tinto and Peabody followed a spot deal agreed between BHP Billiton and Nippon Steel & Sumitomo Metal Corporation, rather than a price reflecting substantial contracted volumes. Platts was unable to fully verify this version of events.
The attention will now turn to PCI contract talks, which are expected to be agreed between Peabody and South Korean steel producer Posco before the end of the week.
For Q1 2015, Peabody's prestigious Coppabella low-vol PCI had been agreed at $99/mt, and mid-vol PCI brand Century at $88/mt, both numbers unchanged from the fourth quarter of 2014.
In Q1, PCI was priced at 84.6% of the premium HCC benchmark.
Assuming this spread holds this coming quarter, Q2 PCI can be predicted to settle at $92.6/mt FOB.
--Julien Hall, julien.hall@platts.com
--Edited by Geetha Narayanasamy,
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Coking coal Q2 benchmark price 'too early to call,' say mills, miners
Singapore (Platts)--17Mar2015/206 am EDT/606 GMT
Negotiations for the Asian coking coal quarterly contract price for the second quarter are going on, despite a news article reporting a settlement between BHP Billiton and Nippon Steel & Sumitomo Metal Corporation, several miners and mills said Tuesday.
The article published on IHS McCloskey's Coal Report on Monday, reported that the two companies had agreed a long-term contract price of $109.50/mt FOB for premium hard coking coal loading between April and June, down from a headline price of $117/mt FOB in Q1.
But this agreement only relates to small volumes sold under a "holiday contract" involving no firm volume commitment and was therefore akin to a spot deal, rather than being a representative quarterly contract price, several marketing and procurement executives said Tuesday.
Such a settlement would be much lower than Anglo American's contract price offer at $116/mt FOB last week.