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| BHP seals coal contracts |
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| PostTime:2010-03-09 07:44:52.0 View:11 |
| BHP BILLITON confirmed today it has reached agreement with customers in Europe, China, India and Japan to supply hard coking coal. The contracts are for a significant portion of 2010 volumes of Billiton, which has also shifted to quarterly pricing. Analysts saw the contracts as a signal that the existing system of annual renewals has ended, while putting more power in the hands of producers just as commodity demand and prices recover. BHP first finalised negotiations late on Friday with Japan's JFE Holdings at or close to $200 a tonne, according to reports; that would be 55% above the 2008-9 contract price of $129 per tonne and close to the prevailing spot rate of $220/tonne. Settlements appear to have been expedited after a week of very wet weather in Queensland caused some producers to slash outputs by 5-10%, with spot prices rising accordingly. |
| Source:Portguide Author: |
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