Vancouver, Canada-based metallurgical coal giant Teck Resources Limited announced on September 19 that it has completed fourth quarter negotiations with a majority of its traditional customers in both the Pacific and Atlantic regions with pricing generally at US$209/mt for its top quality brand, with other brands priced in line with market settlements announced by other producers for similar quality products.
This is about 7 percent below the US$225/mt that customers paid for its top of the line coal in the third quarter.
In its price and sales guidance, Teck also said that its coal sales for the quarter and the year are being negatively affected by some temporary capacity constraints at Westshore Terminals. Shipments through Westshore have been affected by Westshore not operating at its stated annual capacity of 29 million mt during the current quarter.
In the interim, Teck is taking all available steps to mitigate the impact of the shortfalls at Westshore, including diverting shipments to Neptune Bulk Terminals (Canada) Ltd., in which it has a 46 percent ownership interest, and to Ridley Terminals Inc. in Prince Rupert.
Third quarter coal sales are now expected to be in the range of 5.2 to 5.5 million mt, in comparison to Teck's previous guidance for the quarter of 5.8 to 6.2 million mt.
Sales for the calendar year are expected to be in the range of 23 to 23.8 million mt, in comparison to Teck's previously announced guidance of 23.5 to 24.5 million mt.