NWR Moves to Quarterly Coking Coal Pricing

Friday, 10 June 2011 14:48

New World Resources (NWR), Central Europe’s leading hard coal and coke producer, announced 100% of its coking coal sales will be priced on a quarterly basis. The shift, according to NWR, would allow it to align its coking coal pricing with that of the international coal markets. NWR’s average agreed price of coking coal for delivery in the second calendar quarter of 2011 is €215 per metric ton (mt) or $312/mt, an increase of 35% compared to the first quarter price and 52% higher than the FY 2010 average price. The above price average is based on the expectation that coking coal sales for the second quarter of 2011 will be evenly split between semi-soft coking coal and hard coking coal. The average price agreed for coke sales during the second calendar quarter of 2011 is €400/mt ($580/mt), an increase of 19% compared to the first quarter price and 45% higher than the FY 2010 average price. The above price average is based on the expectation of the second quarter of 2011 sales to be approximately 19% blast furnace coke, 67% foundry coke and 14% other types. The company remains on track to produce 11 million mt of coal and 800,000 mt of coke. It expects to sell 10.3 million mt of coal, evenly split between coking and thermal coal, and 720,000 mt of coke in FY 2011.