Canadian miner Teck Resources noted a rise in sales of its metallurgical coal to China, which tallied at 20pc of total estimated sales in Q4 2020.
The company said that while sales estimates remained within its 5.8-6.2mn mt guidance for the quarter, metallurgical coal sales to China saw a recent increase in both price and quantity. Apart from contract sales, priced on cfr China basis, spot sales to the Asian nation were concluded at a rising price, with premiums averaging more than $35/mt over fob Australia prices. Three recent cargoes were sold by Teck at tags ranging between $160-165/mt cfr China.
These sales have helped Teck hold on to its benchmark price despite tags for met coal falling outside of China. Teck now plans to sell about 7.5mn mt of the mineral product to China in 2021 and is aiming at a premium of $50/mt above fob Australia in the spot market for the region next year.