Djr, I just googled and got the news link I was refering to.
BHP, Nippon Steel Agree Cut in Price of Coking Coal
BHP Billiton Ltd., the world's largest exporter of coking coal, and Nippon Steel Corp. settled an annual contract price for the fuel used in steelmaking 16 percent lower than this fiscal year.
BHP Billiton Mitsubishi Alliance, a joint venture with Mitsubishi Corp., agreed to sell premium hard coking coal to Nippon Steel at $98 a metric ton from April 1, Nippon Steel President Akio Mimura said. The largest steelmaker in Asia is paying $116 a ton this year.
Mining companies including BHP Billiton, which owns half of the world's largest exporter of coking coal, have increased supplies of the commodity since prices more than doubled in 2005. An expected increase next year in the price of iron ore, another steelmaking ingredient, may offset the fall in coking coal.
``The cut in the coal price is in line with our expectations, but we believe this to be at the top end of market expectations,'' Goldman Sachs analysts Rajeev Das, Charles Min and Jane Sung said in a note e-mailed to Bloomberg. ``This could more than offset the 5 percent to 10 percent rise in iron ore prices that we expect.''
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