Teck's Q1 met coal sales down 5% YoY
The sales figure aligned with the lower end of its guidance of 5.9-6.3 million tonnes, according to Teck. The company expects its metallurgical coal sales this quarter to be between 6.0-6.4 million tonnes.
Over the first quarter, Teck's met coal production was flat compared with the same period last year to sit at 6 million tonnes. The figure was also below the more than two-year high of 6.4 million tonnes the company achieved during last year's fourth quarter.
Coal production during Q1 had been impacted by the extreme freezing event in January, which resulted in frozen plant components and unplanned downtime, the report explained.
Over the same period, Teck's realized met coal prices rose in Q1 to average $297/tonne, compared with $282/t in the first quarter of last year, though prices had started to decline in March, it noted.
The CFR China price assessments for the first quarter averaged $310/t, down by $18/t on year but largely flat on quarter, the report said without identifying the provider of the assessments. CFR China prices also began to fall in March and ended the first quarter at just above $260/t, Teck said, noting that "the average blast furnace utilization in China has been lower in 2024 as compared to 2023".
Meanwhile, the company's 2024 annual guidance for met coal production remains unchanged from its previously issued guidance within the range of 24-26 million tonnes.
Teck produced 23.7 million tonnes of met coal in 2023 and it expected its coal production to remain within the 24-26 million tonnes range throughout 2025-2027.
Teck is the world's second-largest seaborne exporter of coking coal. Other than coal, the company also produces base metals such as copper and zinc.
Written by Winnie Han, hanyueran@mysteel.com
Edited by Russ McCulloch, russ.mcculloch@mysteel.com
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