MARKETS

Steelmakers to hack coal, iron ore prices

JAPANESE steelmakers are reportedly chasing 60-70% cuts in coal prices for the new Japanese financial year and 40% cuts in iron ore prices.

Blair Price
Steelmakers to hack coal, iron ore prices

In a report by Reuters referencing the original story by the Nikkei Business Daily newspaper, the cuts by the unnamed steelmakers would save the industry around 3 trillion yen ($US33.66 billion) and bring iron ore and coal prices in line with their deals back in 2007.

According to the Nikkei, the steel majors were aiming for metallurgical coal at $US100 per ton, and iron ore at $US50/t.

The newspaper said iron ore kings Vale, BHP Billiton and Rio Tinto would be hit by the new requested prices as early as next week, with coal prices also to be negotiated with the latter two companies.

The ongoing global financial crisis has not only triggered a crash in the high commodity prices of last year, with coking coal then reaching unprecedented levels of $US300/t, but has caused a wave of steel production cuts around the world from November.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production

editions

Mining Magazine Intelligence Automation Report 2023

An in-depth review of operations using autonomous solutions in every region and sector, including analysis of the factors driving investment decisions

editions

Mining Magazine Intelligence Exploration Report 2023 (feat. Opaxe data)

A comprehensive review of current exploration rates, trending exploration technologies, a ranking of top drill intercepts and a catalogue of 2022 Initial Resource Estimates and recent discovery successes.