CEIX - China's move to increase energy efficiency may hit metals supplies / coal demand

China's NDRC is set to raise benchmark levels of efficiency for energy-intensive industries according to a document seen by Platts. With the NDCR indicating that capacity not meeting energy efficiency standards must be removed, ~30% of primary aluminum smelting, 30% of zinc and and 40% copper processing will need to utilize additional energy saving and decarbonization options.  The NDRC and three other departments jointly released efficiency targets in 2021; the move was seen partially as an environmental precaution, and partially as government-led, supply-side reform. With the government increasing standards in early 2022, the market is unlikely to ignore the supply / demand implications across the commodity value chain.  (NYSE:AA) (NYSE:FCX) (NYSE:VALE) (NYSE:BHP) (NYSE:RIO) (NYSE:BTU) (NYSE:CEIX) (NYSE:HCC) Goldman's commodity strategist Jeff Currie appeared on Bloomberg in early February saying "we are out of everything, I don't care if its oil, gas, coal, copper, aluminum, you name it we're out of it."

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China's move to increase energy efficiency may hit metals supplies / coal demand