The world's fourth-largest steelmaker, South Korean steel producer POSCO, announced on Monday that it has agreed to a rise in coal prices with an Australian supplier from the second quarter of 2008.
POSCO has agreed on a price hike of between 205 and 210 percent. The new coal prices are effective from April 1.
However, POSCO has specified that the rise applies to only part of their coal imports from Australia. Australian suppliers provide 60 percent of POSCO's coal imports.
A price hike for steelmaking materials is expected as floods in Australia have resulted in a reduction of global supplies.
Moreover, POSCO had already agreed to a 65 percent hike in iron ore prices with Brazilian mining firm Vale.