Insight
Why didn’t China’s strong steel production benefit domestic coal miners?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
After coronavirus was largely contained early in the country, China’s economy has seen major recovery. GDP year-on-year growth reverted from -6.8% in Q1 to 3.2% in Q2. Thanks to government stimulus measures, especially special-purpose bonds focusing on infrastructure construction and manufacturing, crude steel production has remained robust, registering 3.7% year-on-year growth in the first nine months. But despite the positive conditions, domestic coking coal prices have remained on a downward path. Read our insight to find out why resuming production so quickly in Q1 didn’t do domestic coal miners any favours in the ensuing months and what Q4 has in store for them.
Table of contents
- Steel production barely hurt in Q1 and recovered quickly since then
- but robust production doesn’t equal better margins
- but the cokemaking margin has been higher year-on-year, why?
- What happened to the coking coal price?
- Will the situation improve in the rest of 2020?
Tables and charts
This report includes the following images and tables:
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Crude steel and coke productionBF utilisation rate of key steel millsRebar inventory
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Rebar prices in Hangzhou (25mm, HRB400)Coke prices of quasi grade I in TangshanAnze low-sulphur premium coking coal priceHuozhou high-sulphur fat coal priceMine coking coal inventorySeaborne and landborne coking coal imports
What's included
This report contains:
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