It is reported that major Japanese steel maker, JFE Steel Corporation is believed to have become the first Asian company to agree to pay the new quarterly benchmark of USD 315 for prime hard coking coal.

The company is reported to have done the deal with Anglo Coal for the quarter starting July 1 following on from the Anglo/ArcelorMittal deal settled a few weeks ago. JFE is thought to have agreed to the USD 315 largely because it is becoming anxious about supply of semi hard coking coal of which it is the biggest Japanese buyer as BMA struggles to get on top of water related issues at its Black water operation in central Queensland

Speculating, a source said “JFE would have agreed to pick up more semihard coal supply and for that they would have agreed to lock in a premium for the German Creek product.”

Other Asian coking coal buyers are believed to be on the verge of settling at similar prices but have been waiting for someone to take the lead. Several leading coal producers are meanwhile heading for Korea next week to discuss pricing there with POSCO believed to willingly to accept USD 315.

(Sourced from coalportal)