POSCO, agreed on 7 April 2008 to pay 200% more for the coking coal it will get from an unnamed Australian miner in 2008. The new contract price may trigger a new round of price hikes in the coal market. Recent spot transactions of coking coal have reached as high as USD 330 per metric ton, with offers of premium Australian coals as high as USD 375 a ton, Citigroup said contract prices may be negotiated close to USD 285, as the tight supply has soothed a bit. Significant elevation of iron ore and coking coke costs could force POSCO to lift the price of the steel it produces. POSCO said that it was considering a price rise, which would be the second this year, after the 11.5% adjustment in February.
