I have two quick points to make here that speak to discount to...

I have two quick points to make here that speak to discount to 62% random it’s sustained recent trend;

- Official C02 Em mission targets relaxed in Feb 22

https://cleanenergynews.ihsmarkit.com/research-analysis/china-suggests-slower-steel-decarbonization-but-retreat-on-nat.html

- Despite the absolute carnage on international energy markets, China has become less dependent on international coal suppliers. It’s domestic Coal production massively rammed up in 22 and Met coal has remained at least locally relatively stable, and significantly cheaper than on the international market.

Joining the dots here steel makers that can source relatively cheap Met coal, and without the same C02 emissions caps have purchased significant volumes of ore below 62% as it has made economic sense to do so, this has seen discount to 62% remain low for a sustained period this year.

It is important to note that input cost outside of IO for Steel are a significant variable and do impact IO prices