JPUs chase term

摘要

Japanese utilities are looking to tie up term business amid pressure on coal stocks following heat wave conditions in Tokyo and another serious incident at a nuclear power plant. Sources indicate that Shikoku has recently bought New South Wales coal on a term basis at around 57 dollars /t FOB. One source suggested Shikoku has fixed term business totalling 300,000t, with deliveries beginning next month and is also seeking to procure further tonnage through contract extensions. Meanwhile, several more utilities, including Hokuriku, Chubu, Tohoku, J-Power and Hokkaido have stepped up inquiries for 2005 term supplies, targeting Australian and Indonesian suppliers. Sources suggest prices under discussion are in the 'mid to high 50 dollars range,' and the Shikoku business may have helped set a 'reference' price for the growing amount of term business with an October start, reflecting the JPU's desire to shift some tonnage away from the traditional April-March contract year.