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Metallurgical coal quarterly price settlement roundup Q4 2016

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28 October 2016

Metallurgical coal quarterly price settlement roundup Q4 2016

Report summary

The mammoth Q4 2016 contract negotiations for met coal pricing are finally over, some six weeks later than usual. Steel makers are absorbing a 115% increase in hard coking coal prices, yet some still consider the US$200/t settlement a victory, given the upward trend in spot prices since the agreement. The Q4 settlement has been the most difficult negotiation in four years. Rising prices, and persistent uncertainty over China's supply-side reform, are likely to make the Q1 2017 negotiation just as challenging.

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