Base price for Australian steam coal went down by 9%

Australian company Glencore and Japanese Tohoku Electric Power have entered into a steam coal supply contract for one year starting from April, 2016 till March, 2016 with the base price set at 61.60 US$/tonne, FOB Australia, 6322 kcal/kg GAP. The price is 9.1% lower or 6.20 US$/tonne than last year (67.80 US$/tonne).

The deal has been done with a higher price than has been foreseen earlier, 59-60 US$/tonne, FOB. The price level of 61.60 US$/tonne, FOB, is expected to become the benchmark price for other long term supply contracts with the main customers for Australian coal.