Morning Bites

🔗China’s net finished steel exports grew 7% YoY in June, reversing from the 2% YoY decline in May. On a 1H26 basis, net exports were still down 5% YoY. Although China aims to further reduce “excessive” steel output in 2026 (which was also 4% lower YoY in 2025) net exports remain close to historical highs (after the 25% and 8% YoY growth in 2024 and 2025, respectively). The current five-year plan lacks explicit targets for capacity cuts; however, we believe that further gradual supply-side measures could help rebalance the market and support steel prices

🪨China’s coal imports jumped 29% YoY in June, vs. the decrease of 8% YoY in May. According to Reuters, the dynamics were mainly associated with the dramatic underground accident in late May, which triggered massive security checks across Chinese coal mines

#coal #steel