29/07/14 – Coking Coal production cuts needed – Teck Resources
Reuters reported that the steel making coal market needs to cut another 10 million tonnes of production to get into balance mainly due to weak coal prices.
Mr Don Lindsay CEO of Teck Resources said that producers in the oversupplied market have already announced cuts of about 20 million tonnes but that is not enough. Only about 3 million tonnes of that has been implemented, with the rest expected to come into effect early next year.
Mr Lindsay said that “With such a huge percentage of the industry operating in a cash negative basis we do anticipate that the 10 million tonnes of further reductions that we think are needed will occur. We just can’t predict the timing. As a result, current market conditions could persist for a couple of quarters or longer.