New World Resources sees prices plunge

LONDON (ShareCast) - New World Resources said the price it could sell its thermal coal in 2013 had tumbled as the market was hit by oversupply.

The company managed to negotiate an average price of €60 per tonne for 2013 thermal coal deliveries, a 19% fall on 2012 prices.

Previously the firm had warned that declines in energy demand and broader market conditions meant thermal coal inventories in Central Europe were above historical levels.

The average agreed price of coking coal for delivery in the first quarter of 2013 was €103 per tonne, a 3.0% increase compared to the fourth quarter 2012 realised price.

The average price agreed for coke sales during the first quarter of 2013 is €253 per tonne, a 1.0% drop on fourth quarter 2012 prices.

The company said a range of factors, including exchange rate fluctuations, quality mix, timing of the deliveries and flexible provisions in the individual agreements, might influence final realised prices.

This meant the actual realised price for the period may therefore differ from the average prices announced, it said.