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Tohoku Electric agrees to pay 11 percent premium for Oct'14 thermal coal contracts

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08 October 2014

Tohoku Electric agrees to pay 11 percent premium for Oct'14 thermal coal contracts

Report summary

Tohoku Electric Power settles thermal coal contract price for October 2014 to September 2015 delivery with Australian miner, Glencore Plc. at US$73.45/t FOB Newcastle (6,322 kcal/kg, gross as-received).  While the price is substantially lower than the Oct 2013 term price of US$85.8/t, it is still at 11% premium over the prevailing Newcastle spot price. 

Table of contents

  • Executive summary
  • What drives the premium – product consistency, supply security and price stability
  • What does this mean for producer margins?
  • Conclusion

Tables and charts

This report includes 3 images and tables including:

  • JPU premium – term price vs. Newcastle spot (US$/t, nominal)
  • Australia thermal exports to Japan and price trends
  • 2014 Australia export thermal cash costs (US$/t)

What's included

This report contains:

  • Document

    Tohoku Electric agrees to pay 11 percent premium for Oct'14 thermal coal contracts

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