Mining companies barely created any value during the Chinese super-cycle, prioritising volume at any cost without consideration to the sustainability of healthy margins.This poor performance resulted in shareholders demanding more capital austerity and higher returns.
In recent years, the transition of the Chinese economy towards internal consumption has slowed demand growth, resulting in overcapacity and subsequent price disruption. Elsewhere, thermal coal demand is flattening rather than falling while, thanks to steel production, the call for metallurgical coal has also not endured a radical reduction.
However, both the thermal and metallurgical coal markets are complicated by what are often thought of as a bewildering set of internal and external factors. Our coal consultants are here to help you navigate these challenges and time your investment to ‘beat’ the cycle and deliver real long-term value.