Canadian coking coal miner Teck Resources looks to boost its coal sales to China for the fourth quarter in response to increased demand, after the world's largest coal producer imposed an unofficial embargo on Australian imports.
Since China blocked off Australian coal imports early in October, Chinese end buyers have been actively looking alternatives from other sources.
China imported 5.89 million tonnes of coking coal in October, down 12.4% from September, but up 3.5% from a year ago, customs official data showed, in which Australian imports fell 21% year on year and 23% month on month to 1.53 million tonnes, the lowest in 2020, whereas Canadian imports surged 136.1% year on year to 405,000 tonnes.
Teck announced last week that its existing guidance of sales for the fourth quarter remained 5.8-6.2 million tonnes, with about 20% now to be delivered to China, but its 2021 target of sales to China has enhanced to about 7.5 million tonnes.
Spurred by increased purchases from Chinese buyers, spot prices of Canadian coking coal have been rising fast. Teck estimated it has achieved an average premium of more than $35/t for its CFR China prices against Australian FOB prices.
Last week, its premium low-volatile matter coking coal cargoes were sold at $160-165/t on a basis of CFR China.
The outperformance in the Chinese market in the fourth quarter will help cushion the decline in markets outside China where the majority of Teck's steelmaking coal is sold.
(Writing by Alex Guo Editing by Tammy Yang)
For any questions, please contact us by firstname.lastname@example.org or +86-351-7219322.