Mongolian Mining Corp shifts to monthly talks due to volatile prices

Mongolian Mining Corp (MMC) has been negotiating coking coal prices with its customers on a monthly basis since the second half of last year due to higher price volatility.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

Previously, the Mongolian miner used a quarterly pricing mechanism, chief marketing officer Enkhtuvshin Dashtseren told delegates at the second Coaltrans Asia Coal Trading Forum in Singapore on Wednesday February 20.

Spot prices for premium hard coking coal plummeted by almost 40% to $140 per tonne fob Australia in September 2012 from a high of $226.50 per tonne in June, according to energy pricing agency Platts.

The decline in coking coal prices took a toll on MMC, which said last month that it expected to report an operating loss for the year ended December 31 after a preliminary review of its results.

Landlocked Mongolia has been trying to sell coking coal to countries other than the neighbouring China but logistics remains its biggest challenge.

Last year, MMC sent trial shipments to the seaborne market in a move to diversify its customer base, achieving an average price of $236.50 per tonne fob Russian Far East port Nakhodka.

During the first six months of 2012, the company sold a total of 1.2 million tonnes of washed hard coking coal to China.

Dashtseren said the miner’s washing plant would have a washing capacity of 15 million tpy by the end of 2013.

What to read next
A summary of second-quarter and first-half results posted by Aluminium Bahrain (Alba) for the period ending June 30, 2022
The publication of Fastmarkets’ daily steel hot-rolled coil index, domestic, ex-works Northern Europe and daily steel hot-rolled coil index, domestic, exw Italy for Monday August 15 took place earlier than scheduled due to a reporter error.
Fastmarkets invites all nickel market participants to provide feedback on its initiative to launch a price for the physical mixed-hydroxide-precipitate (MHP) market.
Inquiries for supplies of low-carbon aluminium in Europe for 2023 are steadily increasing, leading a growing number of market participants to write the Fastmarkets low-carbon aluminium differentials into their contracts
The Inflation Reduction Act in the United States may ironically cause global metal market prices to rise for some metals used in electric vehicles (EVs), Fastmarkets sources said
Globalization, financialization and other key differences in today’s metals markets make comparisons to past periods of inflation potentially misleading. Fastmarkets experts discuss.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed