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Slowdown in Steel, Coal and Coke Markets Hits JSW

Source: Steelguru, November 26, 2019

Polish coal miner Jastrzebska Spolka Weglowa announced that the JSW Group posted a net profit of PLN 704.4 million in 9 months of 2019. EBITDA for the first nine months of 2019 was PLN 1.8 billion, net of non-recurring events. Coal production in this period amounted to roughly 10.9 million tonnes and was slightly lower compared to the corresponding period of 2018, which is consistent with Jastrzebska Spolka Weglowa’s production assumptions. Coke production in the period in question was 2.5 million tonnes, down by more than 7% compared to previous year. One should note that last year, until the end of Q3, the Debiensko Coking Plant was still active in the Group. The prices of coking coal and coke remained on a similar level to last year. The average price of coking coal was PLN 676.72 per tonne and was nearly three percent higher than in the corresponding period of last year. The same increase was recorded in coke prices, which stood at PLN 1,115.17 per tonne.

JSW Vice-President for Sales Mr Rafal Pasieka said “The situation on the coking coal and coke market is related to the market for steel and metallurgical products and market trend cycles display big price fluctuations in these sectors. From the beginning of this year we can observe lower demand for steel in the European market, which translates directly into coke and coking coal prices. Additionally, there were certain unfavourable phenomena caused by lack of effective protection of the European steel market and after a period of systematic increases, in September we recorded the first decrease in global steel production, compared to September 2018.”

Sales revenues from the coal produced in Jastrzebska Spolka Weglowa mines for external customers stood at PLN 3.7 billion, compared to PLN 3.9 billion in the corresponding period of last year. The slight decrease in revenues results from lower coal sales. Sales revenues from coke and hydrocarbons reached PLN 2.9 billion, compared to PLN 3.2 billion for the nine months of 2018, which was caused by lower coke sales. Total sales revenues in the JSW Group in the period in question stood at PLN 6.9 billion.

In November, the Budryk Mine launched excavation works performed by a Bolter Miner. This technology will improve the efficiency of execution of roadway excavations, speed up the accessibility of mining fronts and reduce the costs of material consumption.

News Source: CNN IBN Media Group