BHP Billiton Strikes 58% Cut In Coking Coal Prices
June 09 2009 - 10:50PM
Dow Jones News
BHP Billiton Ltd. (BHP) said Wednesday it has agreed to cuts in
contract prices for metallurgical coal of 58% with a significant
number of its customers.
"Terms for a significant portion of 2009 BHP Billiton
metallurgical coal contracts have been concluded following
settlements with key global customers," the miner said in a
statement.
"Based on settlements to date, US$ (freight on board) prices for
prime metallurgical coal products are expected to decrease by
approximately 58% from 2008 levels."
Demand for metallurgical coal, used in the steelmaking process,
has been hit hard by the downturn in global steel markets.
BHP, together with joint venture partner Mitsubishi Corp.
(8058.TO), is the world's largest exporter of seaborne
metallurgical coal.
-By Alex Wilson, Dow Jones Newswires; 61-3-9292-2094;
alex.wilson@dowjones.com