Russian producer raises coking coal prices

Russian coking coal producer Raspadskaya has raised its second-quarter semi-hard coking coal prices to 4,930 roubles (£108) per ton for buyers in the country.

This is up from an average of 4,125 roubles (£90) per ton in the fourth quarter of 2010 and January this year.

Raspadskaya, which sells unwashed coking coal to Russian consumers, has confirmed that it has now finished negotiating prices and supply volumes for the second quarter.

The firm’s main mine of the same name was hit by a fatal accident last year, which halted production and exports. However, the company has continued negotiating new contracts for domestic supplies and is still deciding whether to resume exports as it studies offers from several international firms for medium-term supply.

Raspadskaya exported 1.2 million tons of coking coal in the first half of last year, up until the accident. Of this amount, 90,000 tons was sold in Asia. In the second half, after the accident, the firm sold coal to Russian metallurgical and coke-chemical producers only.

Although production at the flagship mine was partially resumed in mid-December, output is expected to fall considerably below normal levels this year, with 2.5 million tons of coal expected to be produced in 2011, compared to 3.2 million tons between January and May last year.

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