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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