Thu Feb 17, 2011 7:44p
Feb 18 - BHP Billiton , the world's biggest miner, has notified major Japanese steelmakers that from April it wants to replace quarterly pricing of metallurgical coal with monthly pricing, the Nikkei daily said, citing unnamed sources.
The Anglo-Australian company wants to benefit from higher prices for steel-making coal, the business daily said, adding steelmakers oppose the switch, fearing frequent price changes would make production costs more volatile.
Nikkei said BHP requested prices be set monthly for most of the coking coal that Japanese companies buy, with explanations about price levels, calculation methods and other details expected to be provided later.
Continued strong demand in Asia plus unresolved logistical bottlenecks due to production disruptions in Australia caused coal prices to rise by more than 30 percent last year.
(Created by Krishna N Das,sourced:Thomson Reuters)
Tags:BHP, set metallurgical coal prices monthly, Nikkei, coking coal, Japanese steelmakers, raw material, replace quarterly coal pricing
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