China’s winter heating season has just begun, heralding a titanic supply chain experiment as whole industrial sectors reduce capacity or close completely to comply with the leadership’s war on pollution.
The curtailments will take place across the four provinces adjacent to the cities of Beijing and Tianjin, lasting until the middle of March.
Coal is public enemy No.1 in China, making the steel and aluminium sectors -- both massive users of coal-fired power -- key targets for the winter cuts.
Neither sector has experienced supply-side adjustments of this speed and magnitude before and markets have struggled to price in expectations. Read more