Coking coal contracts settle at $170

Courtesy of ANZ:

Newcastle September coal futures slipped 0.3% to  USD90.70/t, while coking coal shed 2.5% to USD148.75/t.  Q4 coking coal contract negotiations have been completed  between BMA and Nippon Steel, with the price settling at  AUD170/t. Although this is an AUD55.00 decrease from Q3  contract prices, the USD20 premium to spot prices was in line  with our expectations. Looking ahead, we believe coking coal  prices may show signs of recovery in the coming weeks. Spot  iron ore fell 2.1% to USD98.10/t, while the January Chinese  rebar contract was steady at RMB3,537/t. There have been  reports that China’s largest privately owned steelmaker,  Jiangsu Shagang Group, has cut its rebar prices for the  remainder of September – a sign that producers are  responding to market oversupply. 

ANZ Commodity Daily 704 130912