Teck Resources Will Cut Dividend if Coal Production Cuts Fail to Lift Prices

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Teck Resources Ltd. — the Canada-based diversified miner of copper, zinc, gold, coal and iron ore — said on Thursday it might have to reduce its dividend in July if industry-wide cuts in the production of steelmaking coal fail to lift prices from current historically low levels.

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To bring the market back into balance, an additional 12 million metric ton reduction in supply is needed above the 30 million mt announced since January 2014, Vancouver-based Teck said.

Teck, the world’s second-largest exporter of seaborne steel-making coal, said the market could be back in balance as early as the second half of 2015 if output cuts and mine closures continue at their recent pace.

With a decline of 1.4% to INR 923.80 ($14.81) per kilogram on Thursday, February 12, the Indian nickel cash price recorded the biggest decline of the day. The nickel spot price saw a 1.0% decline on the LME to $14,700 per metric ton. On the LME, the nickel 3-month price declined 1.0% to $14,765 per metric ton.

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Chinese stainless steel closed mixed yesterday. For the fifth consecutive day, the price of Chinese ferro-chrome held flat at CNY 10,950 ($1,754) per metric ton. The price of Chinese ferro-moly saw little movement at CNY 82,000 ($13,135) per metric ton.

The price of Chinese primary nickel fell 1.0% to CNY 106,700 ($17,092) per metric ton. The Allegheny Ludlum 316 stainless surcharge remained essentially flat at $0.94 per pound. The price of Chinese 316 stainless coil saw little movement at CNY 23,700 ($3,796) per metric ton. The price of Chinese 304 stainless coil saw essentially no change for the fifth day in a row, remaining around CNY 16,700 ($2,675) per metric ton. The price of Chinese 316 stainless steel scrap held steady at CNY 13,050 ($2,090) per metric ton.

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