Peabody Energy has held out for rollover pricing on January-March (Q1) PCI contract shipments in long-running talks which ended late in 2014. The company is understood to have settled benchmark FOB Q1 deals at $99/t for ULV PCI and $88/t for Tier 2 product with South Korea’s POSCO – the same pricing as for Q4 of 2014. The deal comes some weeks after met coal majors, including Peabody, settled Q1 hard coking coal FOB contract pricing with Asian steel mills at $117/t for premium brands, down $1.50/t on Q4, and $116.50/t for mid-vol brands, up $1.50/t on Q4. The PCI outcome is ‘against the tide’ of the headline benchmark trend and improves the ULV ratio against premium hard coking coal to 84.6%, against 83.2% in the Q4 settlement.
Peabody’s PCI rivals were moving to follow up the settlement late this week.
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ICP Record in Varchar 05053494 Beijing Public Record