Chinese State-Owned Miners to Raise Thermal Coal Output

To mitigate the impacts of the rising Coking Coal prices in the key international market that is taking a toll on the profit margins of steel makers, the state-run Steel Mills in China has decided to increase Thermal Coal output.

Higher Thermal Coal output in the country will lower prices of the coal variant that will result in costs of electricity going down, which in turn, will somewhat restrict erosion of profits of the country’s steel makers.

Coking Coal prices have doubled in the last six week in Australia, the key international market, on supply constraints. As a result, steel makers in China saw sharp declines in their profit margins that prompted the China Iron and Steel Association to launch a protest.

Paying heed to the protest, the major state-owned miners in that country have agreed to raise the output.