Canada's coal miner Teck Resources announced that it has raised its coking coal sales to China in the fourth quarter this year due to increased demand, the miner said in a statement on November 22.
Teck said steelmaking coal at Chinese market can be sold at a higher price. Estimated coking coal production in Q4 is about to reach 5.8-6.2 million tonnes, 20% of which will be delivered to Chinese customers.
Teck's pricing in China started to go up in November. Till now, the spot price of the company's coking coal is $35/t higher than Australian FOB pricing.
Teck Resources is the world's second-largest seaborne supplier for coking coal. China's demand for the company's met coal is stronger-than-expected as authorities' restrictions on importing of Australian coal.
Teck said its contract sales to Chinese customers are also priced on the basis of CFR China price assessments. The most recent three cargos, it said, were sold at prices between $160/t-$165/t CFR China.
The miner plans to sell approximately 7.5 million tonnes of coal to China next year, but said these sales are subject to a range of risks including market and economic conditions, port restrictions, etc.
(Writing by Rebecca Liu Editing by Harry Huo)
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