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Friday, 27 November 09
BHP SEEKS VARIABLE COKING COAL PRICE IN JAPAN, NIKKEI SAYS


Bloomberg reproted that, BHP Billiton Ltd. has asked Japanese steelmakers to move to pricing of coking coal linked to spot rates rather than negotiated once a year, Nikkei English News said, without citing anyone.

Melbourne-based BHP is believed to have requested the change to Nippon Steel Corp., Sumitomo Metal Industries Ltd. and Kobe Steel Ltd., the report said. It may also have asked steelmakers in South Korea and India, the Nikkei said.

BHP wants the system in place for the Japanese fiscal year starting April 1, along with a similar change in the pricing mechanism for iron ore, the report said.

The new pricing for coking coal is expected to take into account spot prices in China, as well as steel demand in Japan and other parts of Asia, the report said.
Source: Bloomberg



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