The Russian mining and steel group Mechel expects a 20-25 percent growth in international coking coal prices in 2011, the company's management said during a conference call.
As regards the Russian domestic market, Mechel said that coking coal contract prices for the fourth quarter of 2010 are up by ten percent on the previous quarter. Accordingly, in Q3 2010 the average coking coal price for the Russian domestic market was Ruble 4,200/mt (about $141/mt).
In 2010, Mechel said it plans to produce 28.5 million mt of coal, including 18.5 million mt of coking coal. Specifically, at Yakutugol the company plans to mine 9.3 million mt of coal, including 8.6 million mt of coking coal, at Southern Kuzbass Coal Company 14.3 million mt is expected to be mined, including seven million mt of coking coal, and at its US-based subsidiary Mechel Bluestone the company plans to mine 4.8 million mt of coal, including 4.45 million mt of coking coal.
In H1 2010, the revenue from external customers of Mechel's mining segment totaled $1.3 billion, or 29.7 percent of the company's consolidated net revenue, an increase of 77.9 percent year on year.