Kyodo News reported that negotiations between Nippon Steel Corp. and BHP Billiton are likely to result in a 210% spike in the price of coking coal in the next business year.

At present, BHP Billiton charges USD 98 per tonne of coking coal and the imminent markup would push up the cost to roughly USD 300. The coking coal markup, the first in three years, would price the material at a level far surpassing the past record of USD 125 in fiscal 2005.

As per reports, spot cargoes of coking coal have been sold recently at prices as high as USD 350 per tonne.

The results of negotiations between Nippon Steel and BHP Billiton have functioned as the de facto bellwether in price talks between coking coal suppliers and global steelmakers and if settled, other miners are likely to adopt these levels.