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Xstrata confirms 200% price hikes
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Xstrata confirms 200% price hikes
Xstrata confirmed price increases of up to 200% for its hard coking coal Apr 22, taking the average price to $135/mt from $45/mt. However, Xstrata Coal said it is still delivering delayed shipments from last year at last years prices as production was limited by mine difficulties. Oakys under performance means that the average price for all coal to be delivered between Apr 1, 2004 and Mar 31, 2005 this year comes to $80/mt.
Xstrata Coal does not usually issue releases on prices, but decided it would this year to clarify the contracted prices primarily for analysts financial modelling given their recent entry into the coking coal market and the increased size of the company. Xstrata said it has been preparing the release for several weeks. The last few weeks have seen a flurry of debate over the correct approach to coking coal marketing, over what price levels Xstrata actually achieved and whether it would be punished by buyers in the future for its current strategy
Xstrata confirmed price increases of up to 200% for its hard coking coal Apr 22, taking the average price to $135/mt from $45/mt. However, Xstrata Coal said it is still delivering delayed shipments from last year at last years prices as production was limited by mine difficulties. Oakys under performance means that the average price for all coal to be delivered between Apr 1, 2004 and Mar 31, 2005 this year comes to $80/mt.
Xstrata Coal does not usually issue releases on prices, but decided it would this year to clarify the contracted prices primarily for analysts financial modelling given their recent entry into the coking coal market and the increased size of the company. Xstrata said it has been preparing the release for several weeks. The last few weeks have seen a flurry of debate over the correct approach to coking coal marketing, over what price levels Xstrata actually achieved and whether it would be punished by buyers in the future for its current strategy