Bloomberg reported that Japanese steel giant Nippon Steel has signed the most expensive coal supply contract in its history with trader Glencore under which Nippon Steel will buy coal at USD 375 per tonne until March 2023, at three times higher than the price of the deals made last year. The Glencore deal may be used as the benchmark price for other annual supplies by thermal coal users in Asia. That will boost the cost to generate electricity, and threatens to increase power bills for businesses and households.Earlier, Nippon Steel signed a contract to purchase liquefied natural gas at the highest price in Japan’s history. Reuters had reported on 19 July that Nippon Steel has recently purchased a liquefied natural gas shipment at the highest price ever paid in the country amid growing fears of disruptions of LNG supplies from Russia. The report quoted sources as saying that Nippon Steel bought an LNG cargo for delivery in September at a price of USD 41 per million British thermal units, most likely supplied by a major trading house. The company uses energy resources to generate electricity for its factories, and also supplies part of the electricity to other consumers.
Bloomberg reported that Japanese steel giant Nippon Steel has signed the most expensive coal supply contract in its history with trader Glencore under which Nippon Steel will buy coal at USD 375 per tonne until March 2023, at three times higher than the price of the deals made last year. The Glencore deal may be used as the benchmark price for other annual supplies by thermal coal users in Asia. That will boost the cost to generate electricity, and threatens to increase power bills for businesses and households.Earlier, Nippon Steel signed a contract to purchase liquefied natural gas at the highest price in Japan’s history. Reuters had reported on 19 July that Nippon Steel has recently purchased a liquefied natural gas shipment at the highest price ever paid in the country amid growing fears of disruptions of LNG supplies from Russia. The report quoted sources as saying that Nippon Steel bought an LNG cargo for delivery in September at a price of USD 41 per million British thermal units, most likely supplied by a major trading house. The company uses energy resources to generate electricity for its factories, and also supplies part of the electricity to other consumers.
