Diversified miner Teck Resources Ltd. said it expects to sell
more metallurgical coal on the spot market due to volatile
steel market conditions.
"We are continuing
contract discussions with our customers and are anticipating
selling additional tonnage on the spot market, including to
customers who have traditionally purchased the majority of
their coal requirements on a quarterly pricing basis,"
president and chief executive officer Don Lindsay said in the
companys third-quarter financial report.
for quarterly contract tonnages are determined by customers,
and final sales and average prices for the quarter will depend
on timely arrival of vessels and the performance of our
coal-loading facilities," he said.
About 30 percent of
Tecks 2012 sales were settled on a spot basis to
"We think that
shorter-term pricing will remain because the market is
volatile. We still have long-term contract arrangements, which
gives more certainty on coal volumes," Lindsay said.
Columbia-based Teck said that metallurgical coal prices have
recovered since summer lows, but prices are still below
sustainable levels (
amm.com, Oct. 25).
There have been
improvements in demand in some regions and a gain in gross
domestic product growth in China, which have contributed to
steady coal import volumes, while higher crude steel production
in India has fueled demand, Teck said.
A version of this article was first published by AMM sister
publication Steel First.