US coal and natural gas producer Consol Power is expanding low-vol hard coking coal sales away from China to concentrate more on residential as well as other global markets, the business told experts.

Against a backdrop of weak worldwide need as well as reasonably reduced coking coal prices, the Pittsburgh-based manufacturer said in a discussion provided Thursday that its "economic stamina permits self-displined pricing." Consol said it has actually been selling its Buchanan low-vol HCC to consumers in the United States, Europe, Brazil, South Korea as well as India.

Area pricing into the substantial Chinese steelmaking market is generally the most affordable internationally, as it is frequently used as a market of last hope. US miners are further disadvantaged by higher cost products to China contrasted to Australian rivals.

No spot sales of Buchanan to China have been heard lately.

The company mentioned weak demand especially from Asia, and also reduced export rates for its choice to lower work hrs at Buchanan, laying off 188 staff members. Buchanan delivered 1.1 million st in Q1 2014, of which 489,000 st were sent to customers in China.

An additional similar United States low-vol from one more manufacturer was heard provided Wednesday for a 130,000 mt vessel for mid-July arrival at $115/mt CFR China, based upon a 45-46% CSR, 6.5-8% ash spec.

Consol explained the 5.2 million st/year capacity Buchanan mine in Virginia as a "resting giant for cash flow" able to give extra substantial cash money on the back of any type of increase out there cost.

"Any market enhancement will result in a boost to cash money," it stated.

Consol said a $10/st enhancement in list prices would certainly result in $50 countless extra cash from Buchanan, a single longwall procedure.

iro were go to or near a five-year low.

The worldwide standard for coking coal was concurred at $120/mt FOB for Q2, dropping from $143/mt in the prior quarter to the most affordable industry reference because 2007.

Consol expects to export a total of 7 million st in 2014.