NWR (58,7 CZK, -2,81%) has just released its Trading Update for 1Q13 and 2Q13 price indication. Both sales of coking coal and coke are significantly below what has been expected to sold in 1Q13, most probably due to a recent softness in regional steel markets. The company said „The difficult trading environment has negatively impacted the operating performance year to date. Management is working on efficiency and cost reduction measures to mitigate these negative trends. As a result, the 2013 full year guidance as announced on 21 February 2013 cannot be re-iterated. NWR will inform the market about any such measures and revised targets in a timely manner.“ Indicated price of coking coal for 2Q12 are in-line with benchmark contracts (taking into account i.e. 10% discount as in previous quarters). Announced price of coke for 2Q12 is somewhat below our expectation. We expect the company is to lower its full year production/external sales guidance and we consider the statement as NEGATIVE for NWR shares.