It is reported that ASIAN steel makers have agreed to pay Anglo American USD 315 a tonne for hard coking coal in the September quarter after first rejecting the offer as too high.

UBS analysts led by Sydney-based Tom Price said in a note said that "This sudden deal reflects new concern over supply citing strike action at mines operated by the BHP Billiton Mitsubishi alliance.

Coking coal prices rose 47% to a record USD 330 per tonne for three month contracts starting on April 1 after heavy rain and flooding in Australia shut mines and curbed output from the world’s biggest exporter of the coal.

Stoppages at BHP’s mines in Queensland commenced at the Saraji and Norwich Park mines on June 14, the Gregory, Crinum and Blackwater mines on June 15, and the Goonyella Riverside and Peak Downs mines on June 18.

(Sourced from Bloomberg)