China/Japan term contract price doubles

摘要

China and Japan have reached a preliminary agreement on term steam coal contracts for FY2008 that will see prices increase by 94 percent on last year to more than 131.00 dollars/t FOB. The deal was agreed on April 28 following two days of talks in Tokyo, between Japan Coal Development (JCD) and Chinese representatives from China Coal, Shenhua, Datong and Pingshuo. At the meeting it was agreed that the Chinese suppliers would deliver 5.80mt of steam coal to Japanese buyers at 131.40 dollars/t FOB for Datong material and 131.00 dollars/t FOB for Shenhua material, basis 5,800kc NAR. This compares to the FY2007 settlement price of 67.90 dollars FOB. The new prices are expected to be signed by May 7, according to trader sources.