Teck Updates Met Coal Guidance

Teck Resources reported its second-quarter 2017 price for coking coal sold under quarterly contract has been established based on an average of three assessments, which resulted in pricing of approximately $190 per metric ton (mt). The company said this index pricing mechanism will be from effective April 1 and for future quarters.

Teck now expects its second-quarter average realized coal price to be between $160/mt and $165/mt. The differential between the quarterly benchmark price and the company’s average realized 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. Met coal sales volumes for the second quarter of 2017 are expected to be between 6.8 million mt and 7 million mt. Final quarterly sales will depend on the timing of shipments.