Russia's largest coking coal miner Mechel Group has reached agreement with its customers on a coking coal sales contract price for deliveries in the second quarter of 2011.
Accordingly, Mechel's contract price for coking coal stands at $320/mt for the second quarter of the current year, $10/mt lower than the spot price of ex-Australia coking coal.
Mechel said it expect that its sales contract price for coking coal will likely indicate a slight rise in the third quarter.
As reported by Russia-based Uralsib Bank, the year-to-date increase in domestic rolled steel prices is 20 percent. This will provide domestic miners good grounds for raising coking coal prices. Uralsib also foresees a rise of 5-10 percent in Russian coking coal prices in the third quarter, adding that Australian offers will probably decline.