China coal cuts to spell pain for Japan steelmakers as prices soar
Hong Kong
JAPAN's steelmakers are set to pay for China's effort to manage its coal industry as a surge in metallurgical prices flows through to quarterly supply contracts.
Spot hard coking coal has more than doubled this year to trade near US$200 a tonne, and the gain will be taken into consideration when Japanese steel mills and miners negotiate a supply contract for the fourth quarter. A deal may be agreed at US$140, according to Wood Mackenzie Ltd, 51 per cent higher than the third-quarter accord and the highest since early 2014.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
Glencore now sees FY trading division profit between US$3 billion-US$3.5 billion
Hong Kong team plants seeds to safeguard legacy grains
Gold holds steady as investors focus on US Fed meeting
Chevron CEO expects ExxonMobil arbitration resolved in coming months
Oil falls more than US$1/barrel on Middle East peace talks, US rate cut doubts
Diamond giant De Beers is in the shop window, but the potential buyers are few