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POSCO says Q1 profit doubled, but warns of surging coking coal prices

Published 04/18/2017, 10:38 AM
© Reuters.  POSCO says Q1 profit doubled, but warns of surging coking coal prices
PKX
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  • South Korean steelmaker POSCO (PKX +0.7%) says Q1 profit more than doubled Y/Y but warns that coking coal may now cost far more than forecast because of price surges following Cyclone Debbie.
  • PKX says Q1 operating profit totaled 1.37T won ($1.2B), beating its preliminary estimate of 1.2T won as well as 660B won a year ago, but it now expects contract benchmark prices for coking coal to reach more than $200/metric ton in Q2; before the cyclone, it had forecast contract benchmark prices of $150-$170/ton for the quarter.
  • PKX, the world's fourth-largest steelmaker, says it has suspended negotiations on contract benchmark prices for coking coal due to a hike in spot prices since last month's cyclone that hit Queensland, the world's largest coking coal export region.


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