PBOC’s May 2025 Easing Supports Coking Coal Sector Through Liquidity and Demand Stabilization

As of May 7, 2025, China’s latest monetary easing signals a supportive shift for the coking coal sector. The PBOC cut the RRR by 50bps, lowered policy and lending rates by 10–25bps, and expanded structural credit tools targeting tech, industrial upgrades, and consumer sectors. This eases financing for miners and steelmakers while indirectly boosting downstream demand via housing stimulus. Ferrous paper markets such as DCE coking coal and coke initially rallied during the speech but retraced to opening levels by the end—signaling cautious optimism. Overall, policy tone offers a constructive backdrop for stabilized demand and balance sheet flexibility.