Contract prices for coking coal declined as Chinese steel mills reduce imports and cut output to meet energy saving and carbon-emission reduction goals, the 21st Century Business Herald reported Friday.
BHP Billiton Ltd, the world's largest mining company and also the biggest exporter of coking coal, has agreed Japanese steel producers to cut the quarterly prices of coking coal to $209 a ton from Oct 1. The price stood at $225 a ton in the quarter from July to September, the report said.
In addition, the prices of iron ore, anther main materials for steel production, also are set to fall 11 percent to $129 a ton in the quarter starting Oct 1, Bloomberg said.
This is the first time that prices of coal and iron ore declined since quarterly prices were implemented in 2010, according to the Chinese newspaper.
Local governments required steel mills to shut down by restricting their power supply. The move forced steel mills to cut output,lessening demands for iron ore and coal imports, which affect prices of the coking coal, said the report.