Mongolian Mining Corporation the nation’s biggest coking coal exporter, swung to a full year loss in 2012 after slowing demand in China its main market hit coal prices.
The Ulan Bator based company said that MMC’s average selling price for its washed hard coking coal used by steelmakers fell 30% to USD 108 per tonne even as it sold 17% more coal. The net loss was USD 2.5 million in the 12 months ended December 31 compared with a profit of USD 119.1 million a year earlier. Revenue dropped 13% to USD 474.5 million.
The company said that the apparent consumption of coking coal in China has fallen in line with the slower growth of steel production and the de stocking and reduction of inventory levels by coke and steel producers.
MMC, which accounted for about 27% of the nation’s coal exports said that inventories in China had returned to normal levels from the Q4 of 2012 and re stocking activities are expected to positively influence coking coal prices in the short term.
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