The world's largest coking coal producer, BHP Billiton Mitsubishi Alliance, has asked Japanese steel mills to accept quarterly contracts which could shift the pricing index from annual contract.
BMA has offered to sell coal to Japanese steel mills at $180 per tonne, compared with $200 a tonne for annual contracts, two coking coal traders said.
Japanese steel mills are expected to resist the proposal because it comes at a time of rising prices and conflicts with sales practices with key customers.