Research

Forecasts and market analysis based on price assessments from Fastmarkets MB and Fastmarkets AMM

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February 2016 | Steel Raw Materials


Low prices, financial losses curb fixed asset investment: Coking Coal and Coke Market Analysis


Unsold housing floor space climbed 15.6% year-on-year to 718M cubic metres ending December 2015; reflecting the severe overhang in the domestic housing market.

Fixed asset investment (FAI) in the thermal and metallurgical coal industry fell 14.4% year-on-year to RMB401Bn in 2015, due to overcapacity, low prices and heavy financial losses. In fact, total financial losses incurred by the coal industry rose 37% year-on-year to RMB97.3Bn ($15Bn) last year. As a result, the government recently announced plans to close 500Mt of domestic coal capacity within three years. MBR understands that local governments urged the central government to extend the deadline to five years,...

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