Some analysts previously forecast Xstrata and Rio subsidiary Coal & Allied would agree to prices of around $142/t for semi-soft coking coal.

While the terms of the deal are not available, McClosky reported that Rio struck its March quarter price at $180/t, but with conditions that the June quarterly price would be at 80% of the hard coking coal benchmark for that quarter.

Xstrata settled at $182.50/t for the current quarter but with conditions its next two quarterly semi-soft coking coal contracts would be priced at 77% of the prevailing hard coking coal benchmark, according to the same report.

Both the March quarter deals of around $US180/t with Japanese steelmakers were also reported by the country’s esteemed steel sector newspaper, the TEX Report.

This price is 80% of the $225/t benchmark price for hard coking coal this quarter.

Goldman Sachs previously forecast a price of $170/t for semi-soft coking coal this quarter, and $214/t for the June quarter.

The broker has since lifted its June quarter forecast to $240/t for the commodity.

Analysing the impacts, Goldman said the new deals price semi-soft coking coal in line with low volatile pulverised coal injection coal.

The recent flooding in Queensland hit both hard coking and PCI coal producers hard, but Goldman estimates that less than 1 million tonnes of the 10-15Mt of coal production lost was semi-soft coking coal.

While the commodity is produced in various Hunter Valley operations in New South Wales, Gloucester Coal will also benefit from higher prices for semi-soft coking coal from its mines while Gunnedah Basin miners suffer from high rainfall.