[SMM Steel] Tata Steel and China’s USTB to advance low-carbon steel R&D

According to statistics from the Shaanxi Coal Industry Association, as of the end of May, the province's coal production totaled 318.837 million mt, up 3.8% YoY, accounting for 16.1% of the national coal production. Coal sales amounted to 285.2742 million mt, up 3.12% YoY. In May, the province had 225 mines in operation, producing 63.4498 million mt of coal and selling 62.0982 million mt. Of this, key state-owned coal enterprises—Shaanxi Coal Group, Shaanxi Investment Group, and Shendong's coal mines in Shaanxi—recorded raw coal production of 31.8664 million mt, accounting for 50.2% of the province's coal production; coal sales reached 30.9971 million mt, accounting for 49.9% of the province's coal sales.

Entering the traditional summer sales cycle of 2026, the industry's production and sales pace has not shown a significant recovery. AVC PSI monitoring data show that in July 2026, the domestic sales production schedule for air conditioners fell 15.6% YoY, and the overall production schedule fell 12.8%. Retail side, the chill in the Chinese market continues to linger. AVC estimated data show that in May 2026, total air conditioner retail sales across all channels fell 10.3% YoY, with online channels (including lower-tier markets) down 8.7% and offline channels down 12.2%.

China’s rebar futures fell below around 432 USD/tonne, the lowest in two months, as weak economic data and the property downturn weighed on demand expectations. May crude steel output dropped 2.7% YoY to 84.35 million tonnes, while slower fixed-asset investment and consumption further pressured sentiment. Steel exports rose 8.8% MoM in May, but Jan–May exports were still down 8.1% YoY amid rising trade barriers.