BHP Billiton Ltd
(ASX:BHP) has convinced a key Japanese customer to agree for the first time to buy coking coal at a price 55% higher than the current rate.
The Australian Financial Review reports that Japan’s JFE Steel Corporation will pay BHP $US200 a tonne for coking coal for the April to June quarter, after failing to persuade the Queensland miner to accept a 12-month contract.
The settlement is higher than analysts had forecasted and opens the door for Japanese and Korean steel makers to follow China and give up their annual contract system to move to quarterly price contracts.
BHP’s price represents a 10% discount on coking coal spot-price shipments out of Queensland to markets like China.
BHP reported a profit of $7.243 billion for the 12 months to June 30, 2009.
