Morning Bites

🔗China’s net finished steel exports were up 13% YoY in June, after the 12% YoY gain in May, amid persistently soft domestic demand, reports Reuters. To recap, 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 and 11% YoY in 1H25)

🪨China’s coal imports dropped 26% YoY in June, accelerating from the 18% YoY decline in May, and reached the lowest monthly level in over two years. Reuters reports that the negative dynamics of recent months was both due to the 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