Feb. 29 (Bloomberg) -- Posco, the world’s third-largest steelmaker, won a 12 percent cut in second-quarter hard coking coal prices from Teck Resources Ltd., according to UBS AG.
Posco will pay $206 a metric ton for three-month contracts from April 1, UBS analysts including Sydney-based Tom Price said yesterday in report, without saying where they got the information. That compares with the $235 a ton price agreed for this quarter and UBS’s forecast of $210 a ton.
“Teck and Posco have never settled a benchmark quarterly price contract before, but this deal should still be a guide for similar” transactions, UBS said. Expect further deals “at this level in coming weeks,” it said.
To contact the reporter on this story: Ben Sharples in Melbourne at firstname.lastname@example.org
To contact the editor responsible for this story: Andrew Hobbs in Sydney at email@example.com