Monday, 17 December 2012

thermal coal update: cal yr contract settlement?

Newswires are reporting that Japanese utilities and Xstrata are close to settlement of calendar year coal contracts at ~$95/t.  This a disappointing result given annual contracts for the year starting 1 Oct settled higher and represents only a very small premium to to spot prices.

Contract prices at these levels represent a big problem to Australian producers, particularly given the current level of the A$, as detailed in this post last week.