Glencore Xstrata-Tohoku Agree Oct-Sept Term Coal Price at $85.80/Ton -Source

Posted on October 2, 2013 by Nanthakumar Victor Emmanuel, P.Eng Leave a comment

Tohoku Electric Power Co. (9506.TO) has agreed to buy Australian thermal coal from Glencore Xstrata PLC (GLEN.LN) for delivery in the year from October 2013 through September 2014 at $85.80 a metric ton, a big drop from their year-earlier contract price of $96.90 a ton, a person with direct knowledge of the talks said Wednesday.

The 11% price drop has wide significance for the coal market the two companies’ term-pricing deals serve as a benchmark for other Japanese utilities, as well as for some Taiwanese and South Korean buyers.

http://online.wsj.com/article/BT-CO-20131002-701779.html