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[Ferro-Alloys.com] Shanxi Coking Coal Group Co. Ltd, China's largest metallurgical coal producer, has signed a deal with six state-owned steel mills following attempts by the National Development and Reform Commission to stabilize coal prices, the NDRC said Wednesday.

The push for the state-owned coal mining and steel mills -- Anshan Steel, Baosteel, Hebei Iron and Steel, Hunan Valin, Masteel and Shougang -- to sign such a contract was a reaction to a fast-rising met coal price which was not supported by market fundamentals, the NDRC said.

The pricing basis of the agreement would be set using a bilaterally agreed basis price with a price spread that would take into account the buyer and sellers' volume, logistics and payment terms, the NDRC said.

Such a pricing model did not appear to deviate from existing practice between state-owned coal mining companies and steel companies, sources said.

**Article from Internet for reference only

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