Morning Bites (part 1)

🔗China’s net finished steel exports declined 7% YoY in January-February, vs. the 18% YoY gain in December. In our view, Beijing's recent introduction of an export licence requirement for steel shipments from 2026 could have an effect on volumes. We also remind readers that China aims to further cut “excessive” steel output in 2026 and strictly prohibits new capacity additions. In our view, these measures could help to normalise high Chinese net export volumes (which grew 25% YoY in 2024 and 8% YoY in 2025) and support global steel prices in 2026

🪨China’s coal imports inched up 1% YoY in January-February, after the increase of 12% YoY in December. Per the China Coal Transportation and Distribution Association, local coal imports are expected to fall 5% YoY 465mnt in 2026, given the upcoming supply restrictions in Indonesia

#coal #steel