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Australian Q3 semi-soft coal settled at $74/t

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Publish time: 25th June, 2015      Source: Platts
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Mining companies Glencore and Rio Tinto have settled the Australian semi-soft coking coal contract price with Nippon Steel & Sumitomo Metal Corporation at $74/t FOB for July-September loading, $7 lower than in Q2 2015, according to market sources on June 24.The transaction is likely to be adhered to by other steelmakers in the Asia-Pacific region.The 9% quarter-on-quarter price decline is smaller than the 15% drop seen for Q3 premium hard coking coal, which was set at $93/t FOB Australia last week.For the third quarter, semi-soft accounts for 80% of the premium hard coking coal price, up from 74% in Q2.The long-term contract settlement is also a few dollars above spot clearing prices into China, which were assessed on June 23 at $79.25/t CFR China, equating to a Panamax netback calculation of $70.55/t FOB Australia.One market source indicated that it was surprising to see semi-soft prices reaching lower than the alleged PCI settlements of $72/t and $73/t FOB since historically it has been the opposite.The source said that this quarterly price structure was mirroring that of the spot market where semi-soft has outpaced PCI.