Anglo American, Posco sign Q3 2012 coking coal deal for $225/mt, up from 7% from Q2
Australian metallurgical coal producer Anglo American and South Korean steelmaker Posco Monday signed quarterly contracts for coking coal and PCI coal, including premium low-volatile hard coking coal, for July to September at $225/mt FOB Australia, up 7% from $210/mt FOB in the April to June quarter, and PCI at $162/mt, up 5.7%, several sources reported.
The quarter-on-quarter increase follows supply tightness in the prime hard coking coal market because of strikes at BHP Billiton-Mitsubishi Alliance's Queensland mines over the last two months.
Spokeswoman Jacqui Strambi of Anglo American and spokesman Chung Jae Woong of Posco were unwilling to confirm or comment on the news.
Given the size of the companies in this market, these deals have the potential to become industry-wide benchmarks for the coming quarter. These would be simpler than last quarter, when an early coking coal deal between Posco and Canada's Teck at $206/mt was not followed by a handful of major Australian miners, who insisted on $210/mt.