Coal price falls 31 percent
The first coal price agreements between small Australian miners and Japanese steelmakers this year show that coal prices fell 31 percent.
It is expected that Australian producers will have the upper hand in
iron ore negotiations with the mills in 2006 and
iron ore prices are forecasted to increase 10-15 percent compared to last year's 71.5 percent rise.
However, contract prices for
coking coal, also used in steel
production, are expected to fall after they rose 120 percent last year.
According to unofficial reports, some small Australian miners has signed contracts to sell semi-soft
coking coal to the Japanese for $53/ton, down 31 percent from last year's price.