Nippon Steel to pay record coal price
Japan's largest steelmaker Nippon Steel announced that it has agreed with Australia's BHP Billiton Mitsubishi Alliance (BMA) to pay a record $120/t for coking coal in fiscal year ended March 2006. BHP Billiton Mitsubishi Alliance is a joint venture of BHP Billiton and Mitsubishi Corp in Queensland, Australia. Nippon Steel said the price, which is more than double the current fiscal year's level of around $50, can increase its product prices higher. JFE Steel and other major Japanese steelmakers are expected to agree to similar terms. Nippon Steel is expected to pass the higher price to automakers and other major consumers.