Japanese steelmakers have rejected BHP’s proposed coking coal price hike in the April-June quarter, the Nikkei business daily reported on Tuesday.
BHP has proposed a price of $200 per tonne for the quarter, a rise of 55% over a year ago, but it has yet to offer an annual contract price, the paper reported. Japanese steelmakers are reported as saying that the price is too high and that they cannot evaluate it without an annual contract. The steelmakers are resisting quarterly contracts on the grounds of volatility, saying that would hurt the business of manufacturers, their biggest customers.
Spot coking coal has recently been traded at about $220-$230 a tonne on the back of expanded steel output in Asia amid a government-incentive backed consumption boom.
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