HomeProduct Complimentary download Teck to cut Q3 coking coal output by 22pct by idling mines

Teck to cut Q3 coking coal output by 22pct by idling mines

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Publish time: 29th May, 2015      Source: www.cnchemicals.com
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Canada’s Teck Resources would temporarily idle its six coking coal operations for three-week periods in the third quarter as global oversupply continued to exceed demand, it said on May 28.Teck said in a statement it needed to align output and inventories with “changing coal market conditions” and may cut production further in the fourth quarter.The company will cut coal output by 1.5 million tonnes in the third quarter or 22% from the earlier planned output to 5.7 million tonnes, which was a drop of 16.2% from the actual output in same period last year.It expected coal sales of 6-6.5 million tonnes in the third quarter, compared to 6.7 million tonnes a year earlier. The company sold 6.8 million tonnes of coal in the first quarter and expected sales to be 6 million tonnes in the second quarter.It also expected 2015 coal sales at 25-26 million tonnes, down from former estimate of 26.5-27.5 million tonnes.“Additional coal production adjustments will be considered over the course of 2015 as market conditions continue to evolve,” Teck said.“Rather than push incremental tonnes into an oversupplied market, we are taking a disciplined approach to managing our mine production in line with market conditions,” Don Lindsay, Teck president and CEO, said in the statement.“We will continue to focus on reducing costs and improving efficiency to ensure our mines are cash positive throughout the cycle and well-positioned when markets improve,” he added.