The price set for the year beginning on October 1 was around $64.60/metric ton (mt), reflecting a worldwide supply glut for thermal coal. Australia is by far the biggest supplier to Japan, accounting for about 76% of Japan’s thermal coal imports in the first eight months of this year. The price set by Tohoku and Glencore will likely be followed by other Japanese utilities. Annual contracts starting in October account for about 20% of Australian thermal coal imports to Japan, covering about 22 million mt.