Structure and price adjustments in long-term contracts

Much of the trade in resource goods takes place within a framework of long-term contracts. Contract structure and price adjustments are analyzed by using samples of long-term coking coal supply contracts between Japanese importers and coal mines in Australia, Canada and the US. Long-term contracts h...

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Bibliographic Details
Published inEnergy policy Vol. 21; no. 9; pp. 944 - 952
Main Author Tang, Chuanlong
Format Journal Article
LanguageEnglish
Published Kidlington Elsevier Science Ltd 01.09.1993
Subjects
Coal
Coal industry
Contracts
International trade
Long term
Price variance
Studies
Asia
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Summary:Much of the trade in resource goods takes place within a framework of long-term contracts. Contract structure and price adjustments are analyzed by using samples of long-term coking coal supply contracts between Japanese importers and coal mines in Australia, Canada and the US. Long-term contracts have been widely used in Japan's coking coal imports, although the contracts signed in recent years have been shortened and are more flexible. The empirical analyses show that while in general contract prices have tracked market prices, Japan's coking coal import prices have been considerably stabilized by using long-term contracts.
ISSN:0301-4215
1873-6777
DOI:10.1016/0301-4215(93)90182-F