BHP Billiton hikes coking coal prices by 28%

BHP Billiton hikes coking coal prices by 28%

According to latest news in the market, Australian steel producer BHP Billiton has recently announced an average price increase of 28% on all types of coking coal to be in effect for the contracts on FOB basis as of April 1, 2004. This price increase is above the market expectations. It is stated that the contracts which will be subject to this increase are related with BHP Billiton Mitsubishi Alliance (BMA), BHP Mitsui Coal Operations and BHP Billiton Illawarra Coal Operations. Such price increase will be implemented due to shortage in supply, strong Australian Dollar and high demand for metallurgical coal, fuelled especially by China, stated an official from the company. With this recent increase, the price per ton will increase from its current level of $46.25 to $57. In line with the increase, analysts expect BHP Billiton's profit to range between $50 million and $125 million.