The nation's steel makers are set to pay for China's effort to manage its coal industry as a surge in metallurgical prices flow through to quarterly supply contracts.
Spot hard coking coal has more than doubled this year to trade above $205 a metric ton, and the gain will be taken into consideration when Japanese steel mills and miners negotiate a supply contract for the fourth quarter.
A deal may be agreed at $140, according to Wood Mackenzie Ltd., 51 percent higher than the third-quarter accord and the highest since early 2014.