The Coal And Steel Industry Is Facing Widespread Losses

The China Coal Transportation and Marketing Association organized an online video conference on the market of coal and steel industries. Relevant officials from eight key coal and steel industry enterprises, such as Shanxi Coking Coal, Shandong Energy, Huainan Mining, Baowu Group, and Ansteel Group, participated in the conference. The conference was chaired by Yang Xianfeng, the Chairman of the China Coal Transportation and Marketing Association, and attended by Vice Chairman Shi Ying and Secretary-General Zhao Jianguo. The conference pointed out that the current demand of downstream users for steel production enterprises is insufficient, resulting in widespread losses in the steel industry. At the same time, there is a significant gap between the market price of coking coal and the long-term agreement price, and the coal and steel coking market is in a clear downward trend. The conference proposed that the coal and steel industry should jointly maintain the supply chain security and stable operation of the coal, steel, and coke industry, and take various measures to avoid the imbalance of the supply chain of the coal, steel, and coke industry. The conference reached the following consensus: First, to insist on and improve the long-term agreement mechanism for annual and quarterly pricing of coal and steel. Second, coal and steel enterprises will jointly study relevant measures to stabilize the long-term agreement shipment and price trend at the coal and steel industry 2+4+4 mechanism meeting to be held in June, in order to fully play the positive role of long-term agreement in stabilizing the coal and steel market.