The coronavirus outbreak will impact short-term steel demand in China, according to Coronado Global Resources Inc., which reported a lower production target for 2020.
Coronado said it expects lower China production of steel in the near term, due to quarantine measures imposed by the Chinese government that will cut into demand from the residential and infrastructure construction sectors. However, a stimulus package is expected to be implemented once the outbreak is contained. The company said it expects steel demand to recover.
The mine’s production guidance for 2020 is in the range of 19.7 million metric tons (mt) to 20.2 million mt. This was also due to operations being suspended following a fatality at its Australian operations in January.
Coronado’s underlying net income was $305.5 million, higher than the $209.4 million posted a year ago, but lower than the $310 million forecast by UBS.