This is the difference between coal and natural gas. China needs coal. China doesn't need natural gas.
- JFE Holdings Inc. reportedly agreed to pay $200 per ton for coking coal in a three-month deal with Australian coal miner BHP Billiton Ltd.
- The amount was higher than expected, said William Burns, an analyst with Johnson Rice & Co. Burns, who expected JFE and other companies to pay only about $150 per ton, said this shows how aggressive countries have become in competing with China for natural resources.
- "China has become a black hole, and the Japanese steel makers are trying to lock up their supply," Burns said.