The BHPB and Mitsubishi Alliance (BMA) and European steal group Arcelor have agreed to roll over last year's coking price on a cost, insurance and freight basis, the Japanese steel industry mouthpiece said.

Talks with Japanese steelmakers are currently underway to decide the price of coking coal for the Japanese fiscal year starting April 1, which could be affected by the reports of BMA's price reduction.

Energy Economics director Clyde Henderson said he expected settlements to start coming through now, with the Japanese deals to be finalised this month.

"Until we get the details of exactly what brands and grade of coals are involved it is still fairly nebulous, still in the plus/minus a dollar territory."

Australia must compete with China and Indonesia to supply coal to Japan's active energy industry. China, as reported on MiningNews.net, is growing its coal export capacity with government help.

Australia's competitive position remains strong even with a strengthening Australian dollar, Henderson said.