Morning Bites (part 1)

🔗China’s net finished steel exports were flat YoY in August, while remaining at historical highs, after the 28% YoY gain in July amid persistently soft domestic demand. According to Reuters, Beijing aims to cut local steel output in 2025-26, 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 8mo25)

🪨China’s coal imports dropped 7% YoY in August, vs. the 23% YoY decline in July, amid the slowdown in demand and cheaper domestic prices, according to Reuters. However, Chinese production might be subdued in coming months given the closures at Shanxi mines in late August

#coal#steel