TOKYO, Dec 13 (Reuters) - Glencore Plc and Nippon Steel have agreed on a price of $285 a tonne for first-quarter coking coal supplies, a 43 percent hike over the previous quarter, a source close to the situation said on Tuesday.
The agreement sets a benchmark in Asia for supplies of the coal used in steelmaking, which has quadrupled in price over the past year as China cut production and reduced output at some mines.
The companies agreed on $285 for supplies of Australia’s premium hard coking coal for the January-March quarter in 2017, said the source who is not authorized to speak to the media.
Nippon Steel, Japan’s biggest steelmaker, and Peabody Energy in October set the October-December coking coal contract benchmark at $200 a tonne.
Additional reporting by Oleg Vukmanovic in MILAN; Editing by Richard Pullin