VANCOUVER (miningweekly.com) – Canadian diversified miner Teck Resources has pruned back its forecasted average realised price for steelmaking coal in the second quarter, saying extreme Australian weather has disrupted the market.
The announcement sent Teck’s TSX-listed stock falling nearly 5% in the afternoon session to a low of C$21.36 a share.
Teck now expects its second quarter average realised coal price to be between $160/t and $165/t, falling short of the benchmark price for steelmaking coal sold under quarterly contract that has been established at $190/t.
The Vancouver-headquartered company expects coal sales volumes of between 6.8-million and 7-million tonnes, with the final sales volume dependent on the timing of shipments.
Teck said the differential between the quarterly benchmark price and its average realised price for the second quarter is larger than usual, following steel mills filling their prompt requirements immediately following the Queensland cyclone, resulting in “very few” prime hard coking coal spot sales during the four-week period from mid-April.