BHP Billiton has laid the tactical groundwork for the delayed 2008 'benchmark' hard coking coal round with Japanese steel mills with an early estimate that the Queensland floods could cut its total output by more than 8mt. The announcement further indicates a more aggressive marketing stance by BHPB, breaking the mould from recent years, and potentially prefacing a 200 dollars/t-plus FOB price demand when serious 2008 contract talks start with Japanese steel customers in coming weeks. Like the company's January announcement offeree majeure, the late February output cut estimate was probably not required under stock exchange rules, and indeed, breaks BHPB's traditional reluctance to issue 'customer-sensitive' information.
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