Glencore and Japanese procurers of thermal coal have started to ink new coal contracts. This is typically done on an annual basis but since the material price rise of the past year, they have been slower than usual in reaching agreeable price terms. Japanese power utility Tohoku Electric entered a long term contract for 6,322 kcal/kg delivery between October 2022 and September 2023, at a price of $395/mt. This new price serves as an important industry benchmark moving forward. It’s a positive sign that coal consumers are willing to pay for coal at/near spot prices and moreover, they are willing to lock them in for up to a year.
You can read more on the subject at S&P Global, linked here.
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