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BHP slows coking coal production as steel demand slumps

  •  18 February 2009
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BHP slows coking coal production as steel demand slumps

BHP Billiton Mitsubishi Alliance has reportedly shipped 21% less of the fuel from its largest Australian port in January 2009 as demand slumps.

The Ports Corporation of Queensland says exports from the Hay Pt. coal terminal fell to 2.43 million tonnes from 3.08 million tonnes in January 2008.

The company says the global recession has constrained steel demand. This has prompted steel mills in Asia, Europe and North America to reduce coal purchases which has forced producers to cut output.

The business claims coking coal was its second most profitable unit in the 6 months ended 31 December 2008.

BHP claims it is currently cutting production to as much as 15% below capacity.

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