Mechel reports higher coal sales in 1Q16

Russian coal and steel company, Mechel, produced 5.7 million t of ROM coal in 1Q16, a 3% increase on the same period last year, the company announced in its 1Q16 operational results, and 7% on 4Q15.

Sales of metallurgical coal concentrate were up 6% on 1Q15 and 7% on 4Q15, while thermal coal sales were up 21% on 1Q15 and 7% on 4Q15. Sales of PCI coal and anthracite were down, however, by 19% and 25% respectively, although PCI sales were up 16% compared to 4Q15.

“Coking coal concentrate sales in 1Q16 went up due to contract sales to Asian steelmaking,” said Oleg Korzhov, Mechel’s CEO. “Most of our exports went to South Korea and Japan, with Japan being our leading consumer in terms of volumes. Figures show that Japanese, South Korean and India’s demand for quality coking coal concentrate grows.”

Production growth at the Elga coal complex helped to boost thermal coal sales with ROM production jumping 18% year on year and 3% on the quarter.

“The notable seven-percent increase in steam coal sales versus previous quarter was primarily due to the increase of sales to China during the winter period,” said Korzhov. “Steam coal from the Elga deposit is among the coals shipped to China.”

Edited by Jonathan Rowland.

Read the article online at: https://www.worldcoal.com/mining/24062016/mechel-reports-higher-coal-sales-in-1q16-2016-1024/