Morning Bites (part 1)

🔗China’s net finished steel exports declined 2% YoY in May, vs. the 9% YoY drop in April. On a 5mo26 basis, net exports slid 8% YoY. Although China aims to further reduce “excessive” steel output in 2026 (which was also -4% YoY in 2025) — and strictly prohibits new capacity additions — exports (which increased 25% YoY in 2024 and 8% YoY in 2025) remain close to historical highs. Even though the current five-year plan lacks explicit targets for capacity cuts, further gradual supply-side measures could help rebalance the market and support steel prices, we believe

🪨China’s coal imports fell 8% YoY in May, following the 13% YoY decline in April. The China Coal Transportation and Distribution Association (CCTD) expects local coal imports to decrease 5% YoY 465mnt in 2026, given the upcoming supply restrictions in Indonesia. Per Reuters, Chinese traders are waiting more details on the new Indonesian export ⁠regulation

#coal #steel