Against the background of higher prices, the company prefers the production of thermal coal

Polish company Jastrzebska Spolka Weglowa (JSW) announced the operating results of the coal segment in the third quarter of 2022. The message on the official websitesite reports about it.

Total sales of coking coal in the third quarter fell by 4.5% y/y – to 2.65 million tons, the total volume of coke sales decreased by 17.8% compared to the same period last year – to 700,000 tons.

Production of coking coal in the third quarter decreased by approximately 2.7 y/y – to 2.64 million tons; coke production – by 15.5%, to 780 thousand tons.

The average selling price of coking coal in the third quarter of 2022 fell by 19% in zloty per ton and by 25% in dollar terms compared to the previous quarter, the company said, without providing specific data. The total average contractual selling price of coke fell by 11% in zloty terms and by approximately 17% in dollar terms compared to the second quarter of 2022.

At the same time, the average price of thermal coal sold by JSW in this period increased by approximately 93% compared to the previous quarter. JSW thermal coal production in the third quarter increased by 26.7% y/y – up to 790 thousand tons.

Jastrzebska Spolka Weglowa will publish full sales data for the third quarter in November 2022.

As GMK Center reported earlier, the international credit rating agency Fitch Ratings lowered its 2022 coking coal price expectations from $400/t to $370/t. At the same time, the supply of coking coal has improved, as production has resumed in Australia, and Russian producers have partially redirected exports from Europe to Asia. At the same time, prices for coking coal reached the lowest level, and some producers directed their products to the thermal coal market, where they benefit from high demand and prices.

As GMK Center wrote before, imports of coking coal to China in January-August 2022 increased by 25.5% y/y – up to 38.58 million tons.