PRICING ARRANGEMENT
Australian miners and Japanese steel makers still at odds over coking coal
Sydney/Tokyo — Talks between Australian miners and Japanese steel makers over coking coal supplies have stalled as the Japanese companies are pushing to move to more flexible arrangements from the current quarterly fixed-price terms. The Japanese are backed by BHP, the world’s biggest producer of coking coal, a key steelmaking ingredient. However, other miners are against upending the 45-year-old fixed-price settlement mechanism. Any changes could potentially further roil a market hit by wild swings recently. Coking coal supply contracts between Australian miners and Japanese steel makers are accepted as the benchmark around the world. Pricing could instead be set by using the monthly average of a daily spot price, according to three sources close to the talks who did not want to be named. While none of the companies involved has publicly stated the precise changes being sought, several industry sources said that Japan’s steel makers are pushing for change. "The days of the benchmar...
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