Insight
Tangshan steelmaking crackdown brings upside for China’s metallurgical coal miners
Report summary
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.
Table of contents
- Executive summary
- What happened in Tangshan?
- Tangshan steel production constraints could spread nationwide
- How will this affect coal miners?
Tables and charts
This report includes 5 images and tables including:
- Declining BOF utilisation rate
- Rebar price upticks
- Coking coal imports reach lowest in recent years
- Coke price collapses
- while the Anze coking coal price stabilises
What's included
This report contains:
Other reports you may be interested in
22 December 2021
China coal December 2021 outlook to 2050
Commodity Market Report
China coal December 2021 outlook to 2050
Carbon neutrality ambitions will significantly change the fate of coal
$3,40014 July 2021
Coal Market Service China coal 2021 outlook to 2050
Commodity Market Report
Coal Market Service China coal 2021 outlook to 2050
Pandemic still having short-term impact but country’s quest for carbon neutrality by 2060 will significantly change coal market
$3,40028 June 2019
China coal long-term outlook H1 2019: supply-side reform will help stabilise benchmark thermal price
Commodity Market Report
China coal long-term outlook H1 2019: supply-side reform will help stabilise benchmark thermal price
Growing domestic supply will pressure seaborne thermal coal imports
$3,400