China's Coking Coal Industry Calls for Supply Curbs and Consolidation

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China's coking coal industry needs supply curbs and consolidation according to the chairman of Shanxi Coal Energy Group.

China’s coking coal industry needs supply curbs and consolidation, the head of the largest miner in the segment said this week, as quoted by Bloomberg. The government needs to place limits on supply, consolidate smaller miners into large state-owned entities, and build strategic reserves of coking coal, Zhao Jianze, chairman of Shanxi Coal Energy Group told Chinese media.

After the end of the ban, Australian coking coal imports picked up last year but remained lower than they were before the ban thanks to alternative supplies. China has a booming steelmaking industry which consumes about a fifth of the country’s coal supply and produced over a billion tons of steel per year over the last three years. However, there are plans to reduce that amount in order to hit transition goals that see CO2 emissions peaking by 2030 and China becoming a net-zero economy by 2060.

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