TSX:TECK.A - Post by User
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Oldnicknoron Jun 15, 2015 4:26pm
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Macquarie: More cuts in met coal coming...
Macquarie: More cuts in met coal coming... DJ More Metallurgical Coal Production Cuts to Come: Macquarie -- Market Talk
[Dow Jones] Macquarie thinks the big metallurgical coal miners aren't yet done with cutting production. In the past couple of weeks, Glencore (GLEN.LN), Peabody Energy (BTU) and Teck Resources (TCK) have been scaling back output to protect profits after prices of the steelmaking ingredient fell 21% since the start of January to US$88/ton. "We expect more cuts to materialize over the next few months and think pressure will build further once the third quarter 2015 contract almost inevitably settles much lower quarter on quarter," Macquarie says. The broker expects to see an agreement at US$95/ton in the third quarter, down from US$109.50/ton in the second quarter. (david.winning@wsj.com; twitter: @dwinningWSJ) Editor JSM END) Dow Jones Newswires June 09, 2015 21:25 ET (01:25 GMT) Copyright (c) 2015 Dow Jones & Company, Inc. 061015 01:25 -- GMT
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