Tangshan steelmaking crackdown brings upside for China’s metallurgical coal miners

Strict production limits were placed on steel mills in Tangshan in mid-March after four mills were caught failing to reduce output during a spell of heavy pollution. The measures led to the national BOF capacity utilisation rate falling, which resulted in booming steel prices. But the incident has raised concerns about how long the measures will persist and whether they will be expanded to other steel-producing areas. We participated in a series of site visits in Tangshan on 15-19 March to figure out the implications for the steel and coking coal markets. Read our insight to find out why we think domestic coal miners could benefit – even though the probability of further steel production cuts remains high. Please read our report to find out more.