Thursday, February 5, 2009

Report - Korean Utilities Settle Australian Coal Contracts

Unconfirmed reports from Korea suggest that some South Korean utilities have agreed contract prices with coal producers from Australia.

Contract prices for six-month and one-year contracts have been set at between $70 and $73 a metric ton, excluding freight costs according to the Tex Report. Some contracts have been modified to start in January, April or August, a similar arrangement to those with Japanese utilities.

Last year, Korean utilities were paying around $65 a tonne for thermal coal supplies from Australia last year set contracts with Korean utilities at about $65. Japanese buyers, which settled contract later, paid $125 a ton.

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