Coal price falls 31 percent

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.