(Reuters) - Canadian miner Teck Resources Ltd TECKb.TO on Wednesday raised its forecast for sales volumes of its steelmaking coal in the third quarter, and also said it expects to realize an average price of around $158 to $163 a ton.
Vancouver-based Teck said it now expects to sell between 7.2 million and 7.5 million tonnes of steelmaking coal in the third quarter due to strong demand, up from a previous forecast of at least 7 million tonnes.
The third-quarter price index for premium quality steelmaking coal sold under contract is $170 a ton, Teck said. The company, the world’s second-biggest shipper of steelmaking or coking coal, typically receives around 94 percent of the benchmark price.
Since April 1, the industry has shifted to an index pricing mechanism for premium coal from a negotiated quarterly benchmark price.
Teck’s third-quarter sales volume and price forecast were both higher than expected, RBC analyst Stephen Walker said in a note to clients.
Teck’s shares ended up 0.5 percent at C$29.62 on the Toronto Stock Exchange.
Reporting by Muvija M in Bengaluru and Nicole Mordant in Vancouver; Editing by Savio D'Souza and James Dalgleish