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Metallurgical coal quarterly price settlement roundup Q4 2016
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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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