Xstrata and Chugoku Electric have settled on an annual coal contract for the Japanese fiscal year starting April 1, at a record level between $129.5 to $129.85 a ton. That's below some market expectations of $140 a ton, but consistent with ANZ's forecasts. The contract is 32% higher than the previous year's prices, and exceeds the 2008 record of $125 a ton, according to the analyst. The price is also $10 above current Australian spot prices of about $120 a ton, according to Robertson. Negotiations between Xstrata and Japanese utilities providers were delayed after the earthquake in Japan, the analyst said.
NEW YORK ( TheStreet) -- Coal prices have been climbing, according to ANZ Global Markets Commodity Research analyst Natalie Robertson.