2009 coking coal price negotiations: Nippon Steel secured a 57% price reduction

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According to industry insiders, Japan’s largest steel company, Nippon Steel, has just reached an agreement with the BHP Mitsubishi Alliance (BMA) on the benchmark price for coking coal for 2009; the price set at $128–129 per ton, a significant drop of 57% compared to $300 per ton in 2008. The price agreed upon in these negotiations will take effect on April 1, 2009. 　　The outcome of these negotiations between Nippon Steel and the BHP Mitsubishi alliance will serve as an important benchmark for other steel companies and miners when negotiating coking coal prices for the 09/10 fiscal year. 　　The BHP Mitsubishi Alliance was established as a joint venture between the global mining giant BHP and the Japanese company Mitsubishi, and it is the world’s largest exporter of coking coal. 　　Prior to this, another mining giant, Rio Tinto, reached an agreement on October 10 of this month with Japan’s Chubu Electric Power Company regarding the benchmark price for thermal coal for the 09/10 fiscal year; the price was set at $70–72 per ton, a 44% decrease from last year’s price.