The second quarter 2017 price for steelmaking coal sold under quarterly contract has been established based on an average of three assessments, which results in pricing of approximately US$190 per tonne. This index pricing mechanism will apply effective 1 April, 2017, and for future quarters.
Teck now expects its second quarter average realised coal price to be between US$160 and US$165 per tonne. The differential between the quarterly benchmark price and our average realised price for the second quarter is larger than usual. After steel mills filled their prompt requirements immediately following the Queensland cyclone, there were very few prime hard coking coal spot sales during the four week period from mid-April. Steelmaking coal sales volumes for the second quarter of 2017 are expected to be between 6.8 and 7 million t. Final quarterly sales will depend on timing of shipments.
Read the article online at: https://www.worldcoal.com/coal/16062017/teck-updates-steelmaking-coal-guidance/