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Don Lindsay, CEO of Teck Resources, (TSX:TCK.B) has said that the metallurgical coal market could be re balanced by the middle of 2015. The change would require coal producers to continue cutting back output, the executive said.
Don Lindsay, CEO of Teck Resources, (TSX:TCK.B) has said that the metallurgical coal market could be re balanced by the middle of 2015. The change would require coal producers to continue cutting back output, the executive said.
As quoted in the publication:
A further 10 million to 15 million tonnes of cutbacks are needed to reduce a supply overhang, Teck’s chief executive Don Lindsay said. Teck estimates that producers have already announced cutbacks of around 25 million tonnes this year.
Vancouver-based Teck, the world’s second-largest exporter of seaborne steel-making, estimates that about one third of this type of coal is being produced at a loss. All Teck`s coal operations were profitable in the third quarter, the company said.
Lindsay commented in a conference call:
Given how much production is currently at negative margin, we think there is a good likelihood that this (cutbacks) will happen. There is potential for the coal market to be in balance as early as mid-2015 if further cuts are announced and implemented.”