Coal

[mhlld]

Brazil settles high for coke



Monday, December 13, 2004
BHP BILLITON will be supplying Brazilian steel mills with hard coking coal for US$125 per metric ton during 2005.

The recently negotiated price, double the current benchmark price, is expected to put pressure on Japanese steel mills to accept a big price hike for next year.

Discussions are currently under way between Australia's coking coal exporters and the Japanese to settle contract coking coal prices for the year beginning April 1, 2005.

Brazilian steel producers struck the deal with BHP Billiton Mitsubishi Alliance (BMA), a joint venture in Queensland that accounts for a large portion of global coking coal supplies.

Meanwhile, Platts has reported that the new contract is a major departure from past practice, with BMA offering unified price contracts - without distinction between hard and semi-soft coking coals.

The package deal sees the mill having to buy some second class coal at the same price it pays for the hard coking coals.

Iron ore prices are also expected to be increased by 20-30% for 2005-06 shipments.

International Longwall News

Click here to read the rest of todays news stories.
http://www.miningnews.net/StoryView.asp?StoryID=32508