Glencore PLC and Japanese utilities finalized an Australian thermal coal import contract for April 2018 to March 2019 at US$110/t, reflecting around a 30% yearly increase, Reuters reported Aug. 14, citing sources.
Bilateral talks resulted in the agreement with utilities including Shikoku Electric Power Co. Inc., Chugoku Electric Power Co. Inc. and Kansai Electric Power Co., a source said.
A spokesperson for Chugoku Electric confirmed the contract with Glencore at US$110/t, adding that other deals were agreed at various levels or index-linked prices.
Shikoku Electric said it settled the April-March contract with Glencore in July but did not disclose the price, while Kansai Electric declined to comment. Glencore also did not respond to the newswire's request for comment.
The transaction marks a breakthrough after Tohoku Electric Power Co. Inc. and Glencore failed to agree an annual supply deal. The Tohoku-Glencore price has been used as an industry benchmark.
Japan imports about 115 million tonnes of thermal coal per year, with its utilities buying about 40% of the total exports from Australia.