coal price
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Central Europe's leading coking coal producer, Czech-based New World Resources N.V. (NWR), has announced coking coal and coke price increases of 87 percent and 71 percent respectively over 2009.
NWR has entered into agreements to sell 5.5 million mt of its coking coal to external customers between April 2010 and March 2011. The prices for approximately 80 percent of these sales have been agreed for the Japanese fiscal year (JFY) 2010 period, at the average level of approximately €163/mt, representing a 58 percent increase over the Q1 2010 prices of €103/mt and 87 percent higher than the average 2009 prices.
Meanwhile, the price for the remaining 20 percent of the sales volumes will be renegotiated on a quarterly basis. The average price for the Q2 2010 settlements is approximately €135/mt, mostly for semi-soft coking coal. The actual average realized price and volume for Q2 2010 will be a blend of JFY 2010 and Q2 2010 settlements.
NWR has also agreed terms for the sale of 338,000 mt of coke during the second calendar quarter of 2010 for an average price of €255/mt, which is 31 percent higher than the €195/mt average price for Q1 2010, and 71 percent higher than 2009 average prices. NWR expects to continue pricing coke on a quarterly basis for the rest of the calendar year 2010 in line with previous practice.
"Our shift to pricing arrangements more closely aligned with the broader international trade in our products is also a significant positive, as it allows NWR to also benefit from the positive pricing trends attributable to the global supply and demand imbalance for coking coal, driven by demand in the emerging world," reads the company's statement.
As market conditions have improved and as customer demand has become stronger, in 2010 NWR has decided to increase its coal production to 11.5 million mt from the 11 million it previously announced, while its coke production target of one million mt for 2010 will remain unchanged