Japan's steelmakers refuse BHP's asking for a rise in coking coal price

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

25 Feb 2010

According to Japan's economy new report, for BHP Billiton's proposal requesting an increase of 55% in coking coal agreement price to Japan's steelmakers two days ago, Japan's steel manufacturers have refused this proposal. BHP Billiton wants to put forwards the price of U.S.$200 per ton, a significant rise of 55% than the same period last year. BHP Billiton hopes to create a new price system so as to make the faster reaction according to the market condition. However, Japan's steel producers noted that the price is too high, they can't make the evaluation, unless they will implement in accordance with the annual contract price.
Nippon Steel and JFE Holdings Co. refused to make the comment, and BHP Billiton also rejected to remark on it.
One analyst from one large investing bank maintained that the metallurgy and coal markets are increasing, the price of nearly U.S.$200 per ton asked by BHP Billiton is not impossible. Nevertheless, the negotiation can continue, because BHP Billiton suggests narrowing one-year contract period.
According to the report, BHP Billiton requested that Japan's steel companies use the quarterly contract price in January 2010, or carrying out a talk per half year.
Japan's steel companies refused to the quarterly pricing believing that the mode is unfavorable to manufacturers.

Source: MetalBiz