Insight
Tohoku Electric to pay 13% premium for thermal coal contracts
Report summary
Tohoku Electric settled thermal coal contract price for October 2015 to September 2016 delivery with Glencore at US$64.60/t FOB Newcastle (6,322 kcal/kg, gross as-received). While the price is substantially lower than October 2014 term price of US$73.85/t, it is at 13% premium over the prevailing Newcastle spot price. In Australian dollars terms, the settlement indicates a 9% premium over last October.
What's included
This report contains
Table of contents
- Executive summary
- What drives the premium – product consistency, supply security and price stability
- What does the settlement mean for producer margins?
- Conclusion
Tables and charts
This report includes 3 images and tables including:
Images
- JPU premium - term price vs. Newcastle spot (US$/t)
- Newcastle spot price (US$/t vs A$/t)
- 2015 JPU-type thermal coal cost curve (US$/t)
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