Morning Bites

🔗China’s net finished steel exports were up 12% YoY in May, after the 16% YoY gain in April, amid persistently soft domestic demand and tariff war fears, according to Reuters. Meanwhile, the Chinese authorities are considering cutting local steel output in 2025, in an attempt to restore market balance and profitability at mills. Although the measure’s size was not specified, market participants expect China’s steel supply to decline 2-5% YoY this year. On our numbers a 2-3% output cut could normalise abnormal Chinese net export volumes (which grew 25% YoY in 2024)

🪨China’s coal imports dropped 18% YoY in May, broadly in-line with the -16% YoY in April. According to Reuters, the negative dynamics seen in recent months was both due to a high base effect from 2024 (when a series of mine accidents in Shanxi coal hub drove up imports) and record coal output coupled with soft domestic demand that led to elevated inventories

#coal #steel