Mongolian Mining predicts low prices ahead

OVER-supply is being blamed for the low coke prices that led to Mongolian Mining’s US58.1 million ($A64million) annual loss.

Sadie Davidson

MM chief executive Battsengel Gotov said the company expected coke coal prices to remain low despite it gaining market share from rivals by expanding processing and logistics operations.

"I don't expect prices to fall below current levels, but I don't see meaningful price gain either, until demand and supply equilibrium is restored,” he told a press conference this week.

Mongolian Mining's average price of its hard coking coal fell 15 % last year to $US92.10 a tonne from $US108.40 in 2012, owing to an estimated excess supply of more than 30 million tonnes.

Gotov said the excess was expected to fall to between 10-15Mt this year, helped by higher steel output in Europe and the US.

Mongolian Mining posted a net loss of $US58.1 million last year too.

The company's share price slid 7.9% to 82 HK cents on Tuesday, after the results.