Since 2010 the coking coal industry, led by BHP Billiton, has been moving towards shorter term market based pricing, breaking with the tradition of annual contacts and mutually agreed prices. This reflects commitment from the industry to achieve current market prices. In April this year, BHP told Reuters that it expected two-thirds of the global coking coal market to adopt spot and short-term pricing mechanisms by the end of 2012. On the back of this, trading platform globalCOAL has recently launched trading contracts for coking coal.
Triple Point has supported this move by adding short-term pricing contracts to their QMASTOR Pit to Port solution. This new functionality has already been adopted at Anglo American; many other clients are set to add it soon.
Pit to Port’s Contract Management module has been enhanced to allow both quarterly and monthly pricing contracts. These changes have been accompanied by additional functionality to report and manage contract information, giving organisations an enhanced understanding of their contracted positions and the ability to make more profitable decisions.
Read more about QMASTOR’s Pit to Port solution.