According to a report by Bloomberg, two industry executives said Nippon will pay up to 67% less for semi-soft this financial year.
Reports earlier this month had Nippon striking deals with Macarthur Coal, Anglo Coal Australia and Queensland Coal Mine Management for $90/t for pulverised coal injection coal contracts – a 63% cut.
Other reports stated Nippon had inked deals with BHP Billiton Mitsubishi Alliance for coking coal at $US115-125/t and premium coking coal at $US128-129/t, with the latter 57% down from unprecedented prices of $US300/t achieved last year.
Semi-soft coking coal exports out of Newcastle Port have been declining this year, making up only 10.6% of total shipments in February, compared to 19% in 2008.
