Shorter met coal contracts offer flexibility, analyst says

Nov 15, 2012 | 11:45 AM | Stacy Irish

Tags  Wood Mackenzie, Jim Truman, metallurgical coal, Steel First, Stacy Irish

PITTSBURGH — It makes "more sense" to have shorter pricing terms for metallurgical coal, according to Jim Truman, principal analyst at consultant Wood Mackenzie Ltd.

Metallurgical coal contract prices are currently priced on a quarterly basis, which avoids the volatility associated with spot-market pricing. Shorter-term contracts would give metallurgical coal producers the flexibility to adjust prices to reflect consumer demand and input costs,....





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