Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.
“Sales of all coal types have been affected by the market downturn, with the lower quality metallurgical coal bearing the brunt of the weak markets,” the miner said in a statement on Friday October 19.
“A significant amount of this coal is being sold into the thermal market on an energy-adjusted basis, at a price lower than would be achieved if the coal was sold as a metallurgical product,” it added.
The market outlook remains uncertain despite coal production cuts in several countries, a restocking phase in Chinese steel mills, and higher gas prices in the USA, Yancoal said.
On the production front, a total of 4.1 million tonnes of saleable coking and thermal coal was produced during the third quarter of this year, up by 22% from a year earlier.
As coal sales were lower during the September quarter, Yancoal said there is a potential for production rescheduling during the December quarter to mitigate being stock-bound at several of its mines.
Trading house Noble Group has a 13.2% stake in Yancoal.
