TOKYO -- Major steelmakers and natural resources companies have agreed to maintain the previous quarter's coking coal price of $120 per ton for the procurement in the July-September period.
The price is the lowest since fiscal 2010, when negotiations started to be held by quarter. The companies in the negotiations include Japan's Nippon Steel & Sumitomo Metal and the U.K.'s Anglo American.
Prices of coking coal are determined by negotiations between major steelmakers and resource companies every quarter based on spot prices. There has been a continued slack in the supply and demand conditions of coking coal due to the increased production by major resource companies, which is causing excessive supply.
The agreed price was lower than $129 per ton marked in fiscal 2009, soon after the global financial crisis began.
Prices of iron ore for the July-September period have been placed at 16% lower than the previous quarter. Large-lot users, such as automakers, are expected to step up demands for lowering steel prices because prices of iron ores and coking coal, major ingredients for making steel, have remained at low levels.