NSSMC settles 3Q PCI contract price: Correction

Corrects price in paragraph 2

Japan's Nippon Steel and Sumitomo Metal (NSSMC) has agreed to a contract price of $137/t fob Australia for the July-September quarter with Australian producer Realm Resources for low-volatile pulverised coal injection (PCI) brand Foxleigh.

NSSMC also settled third-quarter 2018 semi-soft coking coal prices at $129/t fob Australia with at least one Australian producer, sources close to the negotiations said.

The July-September settlement was completed relatively swiftly after a June-August average of premium hard coking coal prices was available for guidance, compared with negotiations for the previous quarter that dragged on for more than six weeks.

The NSSMC PCI contract settlements at $142/t for the second quarter and $137/t for the third quarter align with contract prices for South Korean steel producer Posco, which settled both second- and third-quarter PCI contract prices at $139.50/t fob Australia in late July.

"Posco is also a major buyer of Foxleigh PCI, so they would have wanted NSSMC to get the same contract price on average over the two quarters rather than something lower," a Japanese trader said.

Argus last assessed low-volatile PCI spot prices at $130.70/t fob Australia.