Some steelmakers may pay more if coking coal prices are settled annually instead of renegotiated quarterly

摘要

It appears some Japanese coking coal buyers are grudgingly succumbing to a proposed quarterly pricing settlement by BHP Billiton, a move from which some U.S. suppliers expect to benefit. To avoid the hassle of quarterly renegotiations, some steelmakers reportedly are not averse to paying a higher price if they can secure a benchmark number for the entire year. What that number will ultimately settle at remains to be seen, but with global supply expected to remain tight, the price likely will be one producers are content with. "They (Billiton) will get it (quarterly settlement)," a source said. "I have talked to some people in the negotiations, and they said that has been a sticking point. But people will be able to get more money out of them by saying they will do a benchmark for them.