|Jul - Sep Coking Coal Benchmark Settlement at $145/MT|
TUESDAY, June 25, 2013
We are hearing chatter from Singapore that BHP settled the JFY Q2 (Jul – Sep) benchmark with Nippon Steel & Sumitomo Metal Corp at $145/MT for the premium Peak Downs coal, and $142/MT for Goonyella. These settlements are down from JFY Q1 settlements of $172/MT and $169/MT, respectively. This is the lowest settlement since the Fiscal Year 2009 price of $129/MT (in the aftermath of the global financial crisis). While lower than DTC’s estimate of $150 – 155/MT, we’ve conceded the price would likely come in around $145/MT, and think this settlement is in line with industry expectations.
In our full report this morning we included additional commentary on the implications of this important settlement: