Original article by Peter Ker
The Australian Financial Review – Page: 26 : 8-May-18
BHP Billiton executive Arnoud Balhuizen says coal producers and buyers are unlikely to return to the quarterly contract pricing system. The shift away from the traditional pricing system gained momentum in mid-2017 when coking coal buyer Nippon Steel commenced a trial of a new system whereby contract prices were determined on the basis of the average spot price over the previous three months. Meanwhile, Balhuizen believes that the rise in the price of higher-grade coal and iron ore is likely to be structural rather than cyclical.
BHP BILLITON LIMITED – ASX BHP, NIPPON STEEL AND SUMITOMO METAL CORPORATION, MITSUBISHI CORPORATION