BHP Billiton has notified major Japanese steelmakers it wants coking coal prices, which have been determined quarterly since FY 2010, to be set monthly starting in April. According to The Nikkei, the Anglo-Australian resource giant is seeking to have prices promptly reflected in its earnings. But steelmakers oppose the switch, arguing that frequent price changes make their production costs more volatile. BHP requested prices be set monthly for most of the coking coal the Japanese firms buy, with further explanations about price levels, calculation methods and other details expected to be provided later. If the switch is made, prices for the resource will effectively track the going market rates.
