POSCO accepts to pay more for coal
South Korean steel giant POSCO has recently announced that it has agreed to pay more for the high quality Australian coal. The company announced that it has reached an agreement with Australian mining company BHP Billiton and Anglo-Australian mining company Rio Tinto for the supply of coal at a price level of $125 per ton, which POSCO will start to pay as of April. POSCO paid $57.5 per ton for coal last year. Analysts expect iron ore and coal prices to increase significantly this year as Chinese demand has tightened supply of certain raw materials.