Xstrata settled some annual thermal coal contracts for as low as $US63 a tonne last year, but is asking Japanese utilities for $100/t this week, according to the Australian Financial Review.

Newcastle spot prices for the commodity are above $93/t, 22% higher than the $76/t spot deals made a year ago.

In January, Goldman Sachs forecast the thermal coal benchmark to hit $85/t for the new Japanese financial year starting in April, matching the prediction made by Macquarie Research a month earlier.

Hard coking coal spot deals to China and India are at around $200/t, Macarthur Coal said yesterday, 55% higher than the $129/t benchmark that BHP Billiton Mitsubishi Alliance’s Peak Downs mine set with Japanese steelmakers last year.

But whether these spot deals will translate into higher benchmarks is questionable, with the Nikkei Business Daily reporting that Japanese steelmakers rejected a 55% coking coal hike from BHP this week.

In December, Macquarie forecast the hard coking coal benchmark to hit $180/t.

While coal prices are traditionally locked into 12-month contracts, this year producers are also looking at quarterly supply contracts in their negotiations.

Xstrata and Rio’s $70-72/t annual contracts with Japanese utility Chubu Electric last year were a 42-44% discount to premium thermal coal export prices of $125/t in 2008.

BMA’s $129/t premium coking coal benchmark with Nippon Steel last year was 57% lower than the record prices of $300/t set for the commodity in 2008.