China’s steel industry faces insufficient demand, suffers significant losses – industry body
COMMODITIES POLICY & REGULATION
China’s steel industry faces insufficient demand, suffers significant losses – industry body
COMMODITIES POLICY & REGULATION

China’s steel industry faces insufficient demand, suffers significant losses – industry body

 

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The China Coal Transportation and Distribution Association held a seminar on Thursday, attended by eight major coal and steel companies including Shanxi Coking Coal, Shandong Energy and Baowu Group.

Currently, the steel industry, facing insufficient demand from downstream industries, is suffering significant losses, and meanwhile, there is a large spread between market price and LTA price of coking coal, with coal, steel and coke market on an obvious downward trend, according to the meeting.

The coal and steel industry should work together to maintain stable operations of the coal, steel and coke industry chain and supply chain, and take multiple measures to avoid the imbalanced development, it said. 

Parties at the meeting agreed that, coal and steel companies will adhere to and improve the mechanism for annual coal and steel quota and quarterly pricing of long-term agreement (LTA) price, and will hold coal and steel industry “2 + 4 + 4” mechanism meeting in June to study measures to stabilize LTA market for coal and steel, it said.