Poland’s JSW reduced coking coal sales by 14.1% y/y in Q2

Polish coking coal producer Jastrzebska Spolka Weglowa (JSW) reduced coking coal sales by 14.1% in Q2 2024 compared to the same period in 2023, to 2.27 million tons. Compared to the previous quarter, the figure fell by 12.1%. This is stated in the company’s report.

Sales of raw materials to the domestic market amounted to 950 thousand tons, down 16.3% y/y and 15.9% q/q.

Coking coal production in April-June this year amounted to 2.31 million tons. This is down 14.4% compared to Q2 2023 and 4.1% compared to Q1 2024. The total coal production amounted to 2.87 million tons (-13.6% y/y; -8.5% q/q).

«In the second quarter, we reconstructed the mining fronts after the previous events that led to the suspension of some longwalls. At the same time, two new longwalls were started in May and four more in June. Currently, JSW mines operate 23 longwalls,» the statement said.

Coke production in the second quarter decreased by 14.7% compared to the same period in 2023 and by 12.3% compared to the previous quarter to 730 thousand tons. The decrease in coke production was a result of a decline in coking coal production.

Coke sales volumes for the period decreased by 13.9% compared to Q2 2023 and by 22.9% q/q – to 760 thousand tons.

The average selling price of coking coal in PLN decreased by 11% quarter-on-quarter, while the price of coke remained at the same level.

The company notes that China’s restrictions on the implementation of new projects for the construction of blast furnace steelmaking plants do not have a negative impact on JSW’s operations, as the main market for coking coal is Central Europe and India.

«Currently, India has the greatest impact on Australian coal prices, which are the basis for determining contract prices for JSW’s products, where the expansion of coking steel production capacity will significantly increase demand for the relevant products,» the company adds.

As GMK Center reported earlier, in the fourth quarter of 2023, JSW increased sales of metallurgical coke by 5% year-on-year – to 790 thousand tons. Coal production decreased by 2.5% y/y – to 2.69 million tons, while coke production increased by 28% y/y – to 870 thousand tons.