Japan’s Nikkei newspaper has claimed that Rio and Tohoku Electric settled on a price in the “upper” $67/t range for the new Japanese financial year (starting April 1).

Reuters has additionally reported that a buyer and a trader heard this price was $67.80/t.

"We were really surprised that Tohoku signed the first deal with Rio, instead of Glencore," an undisclosed Japanese trader told the newswire.

"We assume this was because Glencore kept asking for prices above $70.”

Glencore, which typically sets the Japanese financial year thermal coal benchmark, announced plans to cut 15 million tonnes per annum of its Australian coal production capacity in 2015 ahead of the annual negotiations with Japanese utilities.

Macquarie Wealth Management was expecting a consequential impact on the annual Japanese thermal coal benchmark with its forecast of $70/t FOB.

In any event, Rio’s deal is well north of Newcastle spot thermal coal prices which have recently traded as low as $55.60t for April delivery.

“Producers who are not exposed to the certainty of the Japanese contract will be under increasing margin pressure through the remainder of 2015.” Macquarie warned last month.

The reported settlement by Rio comes as speculation builds that Glencore will make another takeover offer for Rio.