Anglo American Settles Coal Contracts With European Steelmakers, ANZ Says

Anglo American Plc (AAL), a diversified mining and natural resources company, agreed to a 4.5 percent cut in contract prices for hard coking coal with European steel mills, according to Australia & New Zealand Banking Group Ltd.

European steelmakers will pay $315 a metric ton for three- month contracts starting July 1, Mark Pervan, head of commodity research at Australia & New Zealand Banking Group in Melbourne, said in an e-mailed note today, without stating where he got the information. Japanese mills are “holding out” for lower prices, Pervan said.

Kobe Steel Ltd. (5406) of Japan agreed to pay Rio Tinto Group a record $330 a ton for three-month contracts starting April 1 after heavy rain and flooding in Australia shut mines and curbed output from the world’s biggest exporter of the fuel. The talks ended before a magnitude-9 quake hit the country on March 11, halting some steel output.

To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski in Singapore at akwiatkowsk2@bloomberg.net.