Old school coal dealmaking nears end as Nippon flags new system

June 13, 2017

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Japan’s lead negotiator on metallurgical coal contracts with global miners has sounded the death knell on a decades-old practice of setting prices after volatility whipped up by an Australian cyclone and China output cuts roiled markets. Nippon Steel & Sumitomo Metal Corp. will shift to buying coal at rates linked to published price assessments starting from the current quarter, according to spokesperson Masato Suzuki. The move comes after mills and miners were unable to agree on a fixed contract for the second quarter as spot prices surged and then slumped after tropical cyclone Debbie disrupted Australian supply.

Category: General