Teck predicts strong demand for steelmaking coal – “feeling pretty good about 2018”
Teck predicts that steelmaking coal demand is expected to keep climbing in 2018.
Coming from its 2017 Q4 financial reporting and its recent earnings call, Teck Resources (TECK +2.3%) says it expects growing global steel production to boost demand for its steelmaking coal in 2018, and believes the company is well positioned to benefit from continued strength in commodity prices.
Teck is “feeling pretty good about 2018” after reporting in-line financial results, CEO Don Lindsay said during the earnings conference call, and steelmaking coal demand is expected to keep climbing in 2018 while ongoing logistics and production issues at key Australian mines support prices.
Teck forecasts steelmaking coal production of 26M-27M metric tons in 2018 and 26.5M-27.5M metric tons in 2019-22 despite this year’s closure of its Coal Mountain operations.
Shares of Teck, up nearly 15% YTD, are more than 2% higher after rebounding from early losses.
Source: Seeking Alpha/Carl Surran, SA news editor