Chinese Steel Macro Update
Herewith a quick rundown on Chinese Leading Indicators, PMI’s, and Steel Production. Plus metallurgical coal and iron ore implications.
Herewith a quick rundown on Chinese Leading Indicators, PMI’s, and Steel Production. Plus metallurgical coal and iron ore implications.
We’re beginning to see the inadequacy of Chinese coal production to meet their own power demands as production falters & demand climbs.
The following report published by a Chinese investment bank, Cinda Securities, contains some inside baseball on the Chinese coal industry.
In the first half of 2023, China approved 52 GW of new coal power projects, a significant increase from the 15 GW permitted in H1 2022
European natural gas prices rose 3.9% as traders considered extreme heat and concerns over reduced Russian fuel supplies.
Chinese President Xi Jinping made it clear that China will not allow its path to curb emissions to be dictated by others.
BHP is open to selling its coal mines separately, potentially allowing Whitehaven Coal to bid for the Daunia mine without raising equity.
After a partial closure due to environmental management non-compliance the Port of Richards Bay has resumed its operations.
Asian metallurgical coal prices saw significant declines in Q2, with PLV Hard Coking Coal falling by 22.3% quarter on quarter to $233/mt.