Consequently, the restrictions referred to in the published Report of the CREA, Centre for Research on Energy and Clean Air (Finland-based global research organization dedicated to promoting clean energy and studying air pollution solutions) on Chinese steel production projects do not have a significant impact on the operations of Jastrzębska Spółka Węglowa.
As a reminder, the JSW Group is a significant exporter of coke, including to overseas markets, mainly to India, which is the most promising market due to ongoing investments in new steel production capacity using coke.
The potential impact of restrictions on Chinese steelmaking projects using coke-based technology should be considered more broadly. China, which is the world's largest producer of coking coal, relies on its own coal resources to produce coke. Imports account for less than 10 percent of consumption, including only 2 percent from Australia and about 80 percent from Mongolia and Russia. China is not an exporter of coking coal.
Currently, the biggest influence on the price of Australian coal, which is the basis for determining contract prices at JSW, is exerted by India, where demand for coke and coking coal will increase significantly due to the expansion of steel production capacity using coke.
