Economics
Coal to Drop as Steel Output Slows in BHP Setback: Commodities
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Coal used to make steel is set to drop to the lowest price in two years, eroding earnings at BHP Billiton Ltd. and Rio Tinto Group, as European demand wanes and China shifts supply contracts to Mongolia from Australia.
The contract price may drop 11 percent to $200 a metric ton in the three months to Dec. 31 from $225 a ton this quarter, according to seven analysts and industry officials in a Bloomberg survey. The spot price in China fell 25 percent from the end of June to $177 yesterday, the lowest this year, according to data compiled by Bloomberg.