Teck increases steelmaking coal sales to China

Canada’s Teck Resources (TSX: TECK.A TECK.B) (NYSE: TECK) announced that it has increased its steelmaking coal sales to China for Q4 2020 in response to increased demand.

Teck said sales have been at higher pricing levels compared to markets outside China. Estimated total fourth-quarter sales remain within the company’s existing guidance of 5.8-6.2 million tonnes, with approximately 20% of these sales now to Chinese customers.
Pricing in China for Teck’s steelmaking coal started to increase around the middle of the current quarter when a large portion of overall sales was already concluded, the company said. Additional spot sales to China were concluded gradually as the price was rising and achieved an average premium in excess of $35 per tonne above Australian FOB spot pricing at the time each sale was concluded.

Teck, the world’s second-largest seaborne coking coal miner, is seeing stronger-than-expected met coal demand in China, after authorities reportedly warned buyers to avoid Australian coal.