1 GAZPROM, MONGOLIA SIGN ENERGY MOU, PAVING PATH FOR POWER OF SIBERIA-2 WWW.OILPRICE.COM PUBLISHED:2025/08/27      2 MONGOLIA, US DISCUSS COOPERATION IN INVESTMENT, MINING, TOURISM, SPACE EXPLORATION WWW.MONTSAME.MN PUBLISHED:2025/08/27      3 MONGOLIA TO INCREASE COAL SUPPLY TO CHINA WWW.MONTSAME.MN PUBLISHED:2025/08/27      4 PM REAFFIRMS TRANSPARENCY IN BUDGET APPROVAL WWW.MONTSAME.MN PUBLISHED:2025/08/27      5 BUDGET 2026: SOCIAL INSURANCE AND WELFARE PENSIONS TO RISE BY 6% NEXT YEAR WWW.GOGO.MN PUBLISHED:2025/08/27      6 GAZPROM SIGNS MEMORANDUM OF COOPERATION WITH MONGOLIAN GOVT ON OIL AND GAS WWW.INTERFAX.COM PUBLISHED:2025/08/27      7 WATER-RELATED ACCIDENTS KILL 70 IN MONGOLIA THIS YEAR WWW.XINHUANET.COM PUBLISHED:2025/08/27      8 FITCH AFFIRMS MONGOLIAN MINING AT 'B+'; OUTLOOK STABLE WWW.FITCHRATINGS.COM  PUBLISHED:2025/08/26      9 20-DAY ODD-EVEN LICENSE PLATE RESTRICTION TO BEGIN ON AUGUST 27 WWW.GOGO.MN PUBLISHED:2025/08/26      10 WHY CHINESE INNER MONGOLIA BAOTOU STEEL UNION'S 40% PROFIT SURGE SIGNALS A STRONG BUY OPPORTUNITY WWW.AINVEST.COM  PUBLISHED:2025/08/26      ТӨГРӨГ НУУРЫН БҮЛЭГ ОРДЫГ ТӨРД БУЦААН АВАХААР ШИЙДВЭРЛЭЛЭЭ WWW.ITOIM.MN НИЙТЭЛСЭН:2025/08/27     “ГАЗПРОМ”-ТОЙ ГАЗРЫН ТОСНЫ САЛБАРТ ХАМТРАН АЖИЛЛАНА WWW.EAGLE.MN НИЙТЭЛСЭН:2025/08/27     SXCOAL-ТАЙ ХАМТАРСНААР ХЭРЭГЛЭГЧДЭД ХАМГИЙН БОЛОМЖИТ ХУВИЛБАРЫГ САНАЛ БОЛГОХ БОЛОМЖТОЙ WWW.ITOIM.MN НИЙТЭЛСЭН:2025/08/27     "РИО ТИНТО"-ТОЙ ХИЙХ АРБИТРЫН МАРГААНД ЗГ-ЫГ Н.МЯГМАРААР АХЛУУЛСАН АЖЛЫН ХЭСЭГ ТӨЛӨӨЛНӨ WWW.EGUUR.MN НИЙТЭЛСЭН:2025/08/27     ЭМЭЭЛТ ЭКО АЖ ҮЙЛДВЭРИЙН ПАРКИЙН ДЦС-ЫН ГЭРЭЭНД ГАРЫН ҮСЭГ ЗУРЖЭЭ WWW.NEWS.MN НИЙТЭЛСЭН:2025/08/27     "ЦЕМЕНТ ШОХОЙ" ХК-ИЙГ ТҮШИГЛЭН АЖ ҮЙЛДВЭРИЙН ПАРК БАЙГУУЛАХ САНАМЖ БИЧИГТ ГАРЫН ҮСЭГ ЗУРЛАА WWW.MONTSAME.MN НИЙТЭЛСЭН:2025/08/27     ЭНХТАЙВАНЫ ГҮҮРИЙГ ШИНЭЧИЛЖ ЗАССАНААР 15-20 ЖИЛЭЭР НАСЖИЛТ НЭМЭГДЭНЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2025/08/27     ХЯТАДЫН ИМПОРТЫН НҮҮРСНИЙ 48 ХУВИЙГ МОНГОЛ УЛС, 29 ХУВИЙГ ОХУ-ААС НИЙЛҮҮЛЖЭЭ WWW.ITOIM.MN НИЙТЭЛСЭН:2025/08/26     “ЦАЙРТ МИНЕРАЛ” КОМПАНИЙГ "ЭРДЭНЭТ"-ИЙГ ТҮШИГЛЭН БАЙГУУЛАХ ЗЭС ХАЙЛУУЛАХ ҮЙЛДВЭРИЙН СОНГОН ШАЛГАРУУЛАЛТАД ОРОЛЦУУЛАХААР УРЬЖЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2025/08/26     С.БЯМБАЦОГТ: ЗАСГИЙН ГАЗАР ОЮУ ТОЛГОЙН АСУУДЛЫН ЗАНГИЛААГ ТАЙЛНА WWW.ITOIM.MN НИЙТЭЛСЭН:2025/08/26    

Category

Events

Events

Name organizer Where
MBCC “Doing Business with Mongolia seminar and Christmas Receptiom” Dec 10. 2024 London UK MBCCI London UK Goodman LLC

NEWS

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Gazprom, Mongolia Sign Energy MoU, Paving Path for Power of Siberia-2 www.oilprice.com

Gazprom and the Government of Mongolia have signed a memorandum of cooperation to deepen partnership in the oil and gas sector, the Russian energy major said Tuesday. The agreement was concluded in Ulaanbaatar during a visit by Gazprom CEO Alexey Miller, who met with President Ukhnaagiin Khurelsukh, Prime Minister Gombojavyn Zandanshatar, and Deputy Prime Minister Sainbuyangiin Amarsaykhan. Signed by Miller and Amarsaykhan in the presence of President Khurelsukh, the memorandum outlines plans to advance joint projects and long-term cooperation, with a particular focus on natural gas.
Talks centered on opportunities for collaboration tied to Mongolia’s growing role as a regional energy transit corridor—most notably the proposed “Power of Siberia-2” route from Russia to China via Mongolian territory. The Mongolian section, known as Soyuz Vostok, is nearing completion of its environmental assessment, according to earlier statements. The overall project is designed to deliver up to 50 billion cubic meters (bcm) of gas per year from Western Siberia to China. Its implementation timeline remains contingent on a supply contract between Gazprom and China’s CNPC, negotiations for which are still underway.
Beyond transit, the memorandum aligns with Mongolia’s potential domestic gasification plans. Research from the Melentyev Institute of Energy Systems (RAS, Siberian Branch) estimates Mongolia’s own natural gas consumption could reach about 5.6 bcm annually by 2040, underscoring the country’s interest in developing infrastructure and securing reliable supply. Overall, the new framework signals a tightening energy relationship between Moscow and Ulaanbaatar while positioning Mongolia at the center of a prospective Russia–China gas corridor.

 

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Mongolia, US Discuss Cooperation in Investment, Mining, Tourism, Space Exploration www.montsame.mn

Deputy Chairwoman and Member of the State Great Khural (Parliament) of Mongolia, Bulgantuya Khurelbaatar, received a delegation of members of the House of Representatives from the United States of America, including Ed Case, Ami Bera, Dr. Neal P. Dunn, Sara Jacobs, and Jonathan L. Jackson.
At the beginning of the meeting, Deputy Chairwoman Bulgantuya expressed her pleasure in meeting the U.S. Congress members, emphasizing the United States of America as an important “third neighbor” of Mongolia that holds a special position as a strategic partner. The Deputy Chairman of Mongolia also highlighted that, although the two countries are geographically distant, the United States has consistently supported Mongolia’s democracy and market economy. In addition, Deputy Chairwoman noted that recent high-level visits and multilateral mechanisms have strengthened political relations and deepened cooperation at the regional and international levels.
The Deputy Chairwoman mentioned that in May of this year, United Airlines launched flights on the Tokyo-Ulaanbaatar route and underlined that the joint implementation of the “Travel Responsibly” campaign brought tangible progress. Deputy Chairwoman Bulgantuya further expressed Mongolia’s desire to cooperate in sectors such as energy, strategically important mineral resources, tourism, and space exploration.
U.S. Congressman Ed Case stated that, within the framework of bilateral cooperation, a research group could be established to explore investment opportunities in Mongolia. Congressman Ed Case also commended the higher proportion of women members in the Mongolian Parliament compared to the U.S. House of Representatives and expressed readiness to work together to strengthen parliamentary democracy.
Members of the State Great Khural Erdenebold Sukhbaatar, Saranchuluun Otgon, Anar Chinbaatar, and Undraa Agvaanluvsan attended the meeting. Mongolia and the United States of America established diplomatic relations on January 27, 1987.

 

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Mongolia to Increase Coal Supply to China www.montsame.mn

First Deputy Prime Minister and Minister of Economy and Development of Mongolia, Uchral Nyam-Osor, participated in “The Fifth China-Mongolia Expo” held in Hohhot, the capital of Inner Mongolia Autonomous Region, the People’s Republic of China.  
During the event, First Deputy Prime Minister, Uchral Nyam-Osor, met with Cai Dafeng, Vice Chairman of the Standing Committee of the National People’s Congress of China, to reaffirm the growing friendship between the two countries, exchanging views on expanding economic cooperation.
As the Head of the government-established working group on increasing exports, First Deputy PM Uchral Nyam-Osor highlighted the launch of policy reforms aimed at creating a favorable legal environment to enhance trade and proposed specific areas for bilateral cooperation. In particular, attention should be given to incorporating the development of cross-border connectivity, specifically the Shiveekhuren-Sekhee, Bichigt-Zuunkhatavch, and Khangi-Mandal ports via rail, into China’s 15th Five-Year Plan.  Consideration should also be given to advancing the development of the Zamyn-Uud and Ereen Cooperation Zone, enhancing collaboration in the production of export-oriented renewable energy, supporting private sector initiatives, promoting the export of Mongolian goods, and ensuring the timely issuance of quarantine permits during transit.
Cai Dafeng, Vice Chairman of the Standing Committee of the National People’s Congress of China, highlighted the importance of aligning China’s 15th Five-Year Plan with Mongolia’s long-term development strategies to deepen bilateral cooperation. Vice Chairman Cai Dafeng expressed China’s commitment to strengthening strategic and trade ties, increasing coal imports from Mongolia, ensuring a stable investment environment, and leading cross-border railway development under the framework of regional cooperation, particularly through the Inner Mongolia Autonomous Region, which serves as a primary access point between the two countries.
The meeting focused on strengthening economic relations and enhancing bilateral cooperation in line with open-market principles, with an emphasis on increasing trade turnover.

 

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PM Reaffirms Transparency in Budget Approval www.montsame.mn

Prime Minister of Mongolia, Zandanshatar Gombojav, addressed youth at Ulaanbaatar Park, delivering a speech titled “New Confidence-Innovation” in which the Premier emphasized tax reform and Mongolia’s digital transition.
Earlier, a total of 190,000 citizens participated in the public vote on Mongolia’s 2026 draft budget, with 50 percent of respondents aged between 18 and 35. The Prime Minister highlighted that young people also demonstrated strong engagement in the VAT survey conducted through the “DParliament” electronic system.
In response to questions from young citizens, PM stated that the proposed tax package includes improvements to the progressive tax system on salary income, the integration of operating income into the same framework, and the introduction of tiered VAT discounts based on purchase amounts. The Premier further emphasized that the Government will support wealth creators, producers, and employers by gradually increasing VAT refunds and reforming the current system, ensuring that those who pay taxes are rewarded, rather than disadvantaged.
The tax service will also offer advisory support and implement risk prevention measures. It will introduce tax relief aimed at protecting the income of citizens and households, promoting employment, and easing the tax burden on low and middle-income individuals and enterprises. Additionally, it will foster an environment that enables businesses to operate sustainably, generate savings, and scale up operations.
Youth have voiced strong criticism of excessive government spending, the misuse of budget funds on unnecessary projects and programs, and inefficient resource allocation. Many conveyed that they are not opposed to paying taxes, but are frustrated by the lack of transparency regarding how their contributions are being utilized.
PM announced that a public opinion survey and open discussion will be conducted when the budget draft, developed with input from citizens, is presented to Parliament. The budget approval and allocation process will now be open and transparent. Emphasizing a shift from bureaucratic control to public oversight, the Government is developing a digital system that will clearly display how and where taxpayers’ money is spent, broken down by aimag, city, soum, district, bag, and khoroo. The program is set to launch soon, with a call for young people to participate by casting their vote.
Young people urged the Prime Minister to support reforms in the information technology sector, promote start-ups, and establish a tax-free zone and business-friendly environment. The Premier expressed his appreciation for the opportunity to engage with youth ahead of the state budget discussions and the opening of the parliamentary session. He emphasized that the feedback received during the dialogue is a valuable contribution to shaping effective tax reforms.  
Prime Minister Zandanshatar noted that an intelligent, energetic, and open-minded generation of youth will be the driving force behind a new Mongolia, highlighting that the time has come for the country to transition from a coal-based economy to a knowledge-driven economy, reported the Media and Public Relations Department of the Government of Mongolia.

 

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BUDGET 2026: Social insurance and welfare pensions to rise by 6% next year www.gogo.mn

The Government has submitted the 2026 Budget Bill and is holding a public consultation to gather citizens’ comments on next year’s budget.
According to the draft bill, the Government projects balanced revenues of MNT 31.6 trillion, equivalent to 30.9% of GDP, and total expenditures of MNT 33.0 tugriks, or 32.2% of GDP, resulting in a basic budget balance of MNT 2.0 trillion (2.0% of GDP) in 2026.
As part of its policy to improve the accessibility of social protection programs, the Government plans to increase social insurance and social welfare pensions by 6 percent next year. The budget earmarks MNT 378.4 billion for this purpose.
The bill also reflects the rising costs linked to the growing number of pension and allowance recipients under the social insurance and welfare systems. This includes more children allowance, as well as increases in temporary disability, unemployment, and funeral benefits.
The legal framework requiring wages, pensions, and allowances to be adjusted in line with inflation was introduced in the 2025 fiscal year. Under this policy, pensions and benefits were also increased by 6% last year.

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Gazprom signs memorandum of cooperation with Mongolian govt on oil and gas www.interfax.com

Gazprom has signed a memorandum of cooperation with the Mongolian government aimed at developing a partnership in the oil and gas sectors.
The document was signed during a working visit by a delegation from PJSC Gazprom led by Management Board Chairman Alexei Miller to Mongolia, Gazprom said.
Miller held working meetings with the Mongolian president and the country's prime minister in Ulaanbaatar. "The meetings discussed prospects for cooperation in the gas sector," Gazprom said.
It was previously reported that the Mongolian side is completing the environmental assessment of the Soyuz Vostok gas pipeline from Russia to China, which will become an extension of Power of Siberia 2. The Power of Siberia 2 project involves supplying up to 50 billion cubic meters of gas per year to China through Mongolian territory from the resources of Western Siberia. The project's implementation timeline depends on the conclusion of a contract between Gazprom and China's CNPC, negotiations for which are still ongoing.
Natural gas consumption in Mongolia, through which a transit gas pipeline from Russia to China will be laid, could reach 5.6 bcm per year by 2040, according to estimates by scientists from the Melentyev Institute of Energy Systems of the Russian Academy of Sciences' Siberian Branch.

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Water-related accidents kill 70 in Mongolia this year www.xinhuanet.com

A total of 70 people have been killed in water-related accidents across Mongolia since the beginning of 2025, the country's National Emergency Management Agency (NEMA) said Tuesday.
Among the dead people, 50 were adults and 20 were children, said a statement from NEMA.
Water-related accidents in Mongolia happen more often during summer and vacation seasons due to a dramatically increasing number of people who travel to the countryside, said the NEMA.
The agency urged people to stay away from flooding rivers to prevent possible accidents.
In 2024, a total of 77 people, including 14 children, were killed in water-related accidents in Mongolia, according to the agency.

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Fitch Affirms Mongolian Mining at 'B+'; Outlook Stable www.fitchratings.com

Fitch Ratings - Seoul/Taipei - 25 Aug 2025: Fitch Ratings has affirmed coal producer Mongolian Mining Corporation's (MMC) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B+'. The Outlook is Stable. Fitch has also affirmed MMC's senior unsecured notes due 2030 at 'B+' with a Recovery Rating of 'RR4'. The notes are jointly and severally issued by MMC and its wholly owned subsidiary, Energy Resources LLC.
MMC's IDR is constrained by its concentrated end-customer base, small scale and the high country risk for mining operations in Mongolia. We expect earnings to deteriorate substantially in 2025, largely due to lower coal prices. However, we believe its rating headroom remains substantial with net leverage remaining below 0.5x over the next two to three years, well below the negative sensitivity of 3.0x. We believe the rating is further supported by the company's ability to generate positive FCF despite challenging market conditions.
Key Rating Drivers
Limited by Scale and Concentration: MMC's small scale, and product and geographical concentration constrain its business profile. The company's EBITDA is low compared with Fitch-rated coal miners globally. We expect annual EBITDA to remain below USD400 million over the next two to three years as we forecast lower coking coal selling prices. Washed coking coal products contributed to 97% of total revenue in 2024, in line with historical levels.
We believe that MMC's main end-customer base is in northern China, even though the share of the top 10 customers located there has decreased substantially in recent years. The heavy reliance on Chinese customers makes it vulnerable to economic conditions and regulatory changes in China. MMC's mine gate cash cost is in the first quartile of the global coking-coal cost curve, but its cost advantage is limited to northern China. We believe additional transportation costs beyond the region would put MMC in the higher quartiles of the cost curve.
Country Risk Remains High: We believe MMC's financials are significantly affected by the volatility of Mongolia's mining regulations. The company's mining assets are all in Mongolia and subject to local regulations. The effective rate for the royalty reference price was raised to over 20% during the Covid-19 pandemic, from 5%-8%, increasing MMC's financial pressure. The reference price has fallen and stabilised and the mining product exchange established a more transparent reference price from October 2023, but the record of stable regulation is short.
Lower Prices Affect Earnings: We expect revenue and EBITDA to deteriorate substantially yoy in 2025, largely due to lower metallurgical coal prices, especially in 1H25, and sales volume. Earnings should improve in 2H25 with product mix improvements, slightly higher average selling prices and gold production targeted to start in late August. Overall, we expect the EBITDA margin to fall to around 36% in 2025 (2024: 47%) and remain below 40% in 2026-2027 amid a limited recovery in coking coal prices, steady coal sales and ramped up gold mining operations.
Financial Profile Remain Robust: We forecast EBITDA net leverage to increase slightly in 2025 to 0.4x (2024: 0.2x) on expectations of lower earnings in 2025, but to improve from 2026 with higher EBITDA and continued positive FCF generation. We expect FCF to stay positive but reduce significantly in 2025 to close to neutral levels due to the EBITDA decline and higher capex, but we believe FCF generation will improve from 2026 as capex normalises and earnings improve.
Acquisitions Drive Diversification and Growth: MMC has started diversifying into other metals through its recent acquisitions of 50% of Erdene Mongol LLC, a gold and precious metals exploration company, and 50.5% of Universal Copper LLC, a copper and other non-ferrous metals exploration company. However, the coal segment will remain its dominant revenue contributor in the short to medium term. We do not expect aggressive M&A in the next two to three years, as management has indicated a cautious approach to acquisitions.
Still, we will evaluate any debt-funded investment larger than Fitch expects as an event-driven risk and assess the effects on MMC's financial flexibility and credit profile.
Peer Analysis
MMC is a single-product coal miner, similar to Indonesia-based miner peers PT Indika Energy Tbk (B+/Stable), PT Golden Energy Mines Tbk (GEMS, BB-/Stable) and Golden Energy and Resources Pte. Ltd. (GEAR, B+/Negative) in Australia. Its operational profile in terms of mine life is over 20 years, similar to GEAR's 23 and higher than GEMS's around 20 years and Indika's around 14 years. Still, MMC's concentrated customer base and Mongolia's volatile mining regulations compare unfavourably with that of rated peers.
MMC is slightly larger than Indika in terms of EBITDA despite its smaller scale, as MMC has a much higher EBITDA margin due to its low cost position in the first quartile of the global cost curve. MMC's EBITDA net leverage is also lower than that of Indika. GEAR, like MMC, is focused on metallurgical coal, but MMC has a stronger financial profile with higher margins and lower leverage.
MMC is smaller than GEMS in terms of production scale but has a much higher EBITDA margin. However, GEMS also has a more conservative financial profile with a net cash position at end-December 2024.
Key Assumptions
- Total annual coal sales volume slightly below 8 million tonnes (mt) on average in 2025-2027
- Revenue to fall by 20% in 2025, grow by 21% in 2026 and decline by 3% in 2027
- EBITDA margin of 36% in 2025, 39% in 2026 and 38% in 2027
- Capex of USD236 million in 2025, USD225 million in 2026 and USD183 million in 2027
- No dividend payment in 2025-2027
Recovery Analysis
- The recovery analysis assumes that Mongolian Mining would be reorganised as a going concern in bankruptcy rather than liquidated.
- We have assumed a 10% administrative claim.
- An enterprise value/EBITDA multiple of 4x is applied to the going-concern EBITDA to calculate a post-reorganisation enterprise value
- MMC's going-concern EBITDA is based on the average EBITDA we expect between 2025-2028
- In the distribution waterfall, we have assumed all secured debt to be prior ranking debt.
- Using these assumptions in the recovery calculation, as specified in Fitch's Corporates Recovery Ratings and Instrument Ratings Criteria, Fitch estimates MMC's US dollar bonds will have a 100% recovery rate. The criteria also stipulates an 'RR3' cap on second lien and unsecured instruments for 'B+' rated instruments (except where these instruments are issued by structurally senior operating subsidiaries in a multitier corporate structure). The company's business location in Mongolia further caps MMC's recovery rating at 'RR4'.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade:
- EBITDA net leverage above 3.0x for a sustained period;
- Adverse changes in mining regulations in Mongolia.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade:
- Positive rating action is not envisaged in light of MMC's limited diversification in end customers and high country risk.
Liquidity and Debt Structure
MMC's liquidity was adequate with readily available cash on hand of USD141 million at end-December 2024 and no short-term maturities within the next 12 months. Total debt was USD240 million, consisting of USD220 million of senior notes due 2026 and a USD20 million loan at Erdene Mongol. In March 2025, the company successfully refinanced its USD220 million bonds due 2026 by issuing a USD350 million bond due 2030, improving its liquidity and extending its debt maturity profile significantly.
Issuer Profile
MMC is the largest producer and exporter of high-quality hard coking coal in Mongolia. It owns and operates the Ukhaa Khudag and Baruun Naran open-pit coking coal mines in South Gobi province. MMC processed 15.4mt of run-of-mine coal in 2024, which yielded around 8.4mt of washed coking coal as a primary product and 0.7mt of middlings as a secondary product.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Click here to access Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in our credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products....

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20-day odd-even license plate restriction to begin on August 27 www.gogo.mn

Starting from August 27, Ulaanbaatar will implement a 20-day restriction on odd and even license plate numbers in response to the expected surge in traffic congestion as the new school year begins.
According to the capital city authorities, a public survey was conducted to gauge citizens’ views on limiting vehicle use by odd and even license plates on weekdays, regardless of zoning. The survey closed at midnight yesterday, and based on the results, the decision to enforce the restriction was finalized.
The measure will be in effect for 20 days, though it will be suspended on September 1, the official first day of school.
D.Badarsan, coordinator of the Capital’s Road Traffic Congestion Reduction Project and Program, confirmed the decision alongside the Traffic Control Authority (TCA) and the Traffic Safety and Road Transport Center (TSRTC).
Odd-Even Driving Schedule in Ulaanbaatar (Aug 27 – Sep 16, 2025)
 If your license plate ends in an odd number (1, 3, 5, 7, 9):
You may drive on: August 27, 29, 31 and September 3, 5, 7, 9, 11, 13, 15.
If your license plate ends in an even number (0, 2, 4, 6, 8):
You may drive on: August 28, 30 and September 2, 4, 6, 8, 10, 12, 14, 16.
The restrictions will apply from 8:00 AM to 8:00 PM in six central districts.

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Why Chinese Inner Mongolia Baotou Steel Union's 40% Profit Surge Signals a Strong Buy Opportunity www.ainvest.com

The steel sector, a barometer of global economic cycles, is showing early signs of a long-awaited rebound. At the forefront of this revival is Inner Mongolia Baotou Steel Union Co., Ltd. (600010.SS), whose 40% year-over-year profit surge in Q2 2025 has ignited investor optimism. This article examines how the company's robust earnings growth, favorable technical indicators, and strategic operational improvements position it as a compelling near-term investment in a cyclical sector poised for recovery.
Technical Momentum: A Convergence of Signals
Baotou Steel's stock has recently exhibited a rare alignment of technical indicators, suggesting strong upward momentum. On August 25, 2025, the stock closed at $2.99, up 9.93% from the previous session—a surge fueled by a Golden Star Signal triggered on June 26, 2025. This rare technical pattern, where short-term and long-term moving averages converge with price action, historically precedes prolonged gains.
The stock's price is currently in a strong rising trend, with the 50-day moving average above the 200-day line—a bullish “death cross” reversal. Analysts project a 58.72% price appreciation over the next three months, with a 90% probability of closing between $4.18 and $5.17 by November 2025. Key support levels at $2.68 and $2.52 provide downside protection, while the absence of immediate resistance suggests room for further gains.
Fundamental Catalysts: Profitability and Strategic Expansion
Baotou Steel's Q2 2025 earnings report revealed a 40% year-over-year net profit increase, driven by a combination of cost discipline, product innovation, and market diversification. The company's gross margin expanded from 20.5% in 2020 to 23.4% in 2022, reflecting operational efficiency gains from automation initiatives like its Smart Steel Production Line, which reduced labor costs by 15%.
Strategically, the company has diversified into high-margin segments such as high-strength steel for automotive and construction sectors, which now account for 30% of its revenue. This shift aligns with global demand for lightweight, durable materials in electric vehicles and green infrastructure projects. Additionally, Baotou Steel's 12% export growth in 2023—driven by expansion into Southeast Asia and Africa—has insulated it from domestic market volatility.
Cyclical Sector Rebound: A Tailwind for Steel
The steel industry is inherently cyclical, with demand tied to infrastructure spending and manufacturing activity. Baotou Steel is uniquely positioned to benefit from two macroeconomic trends:
1. Global Infrastructure Booms: China's 14th Five-Year Plan and international initiatives like the Belt and Road project are driving steel demand. Baotou Steel's proximity to Inner Mongolia's raw material resources reduces logistics costs, enhancing its competitive edge.
2. Green Steel Transition: The company's $300 million investment in green technologies over five years—targeting an 18% reduction in carbon emissions per ton—positions it to capture emerging markets for sustainable materials.
Risk Mitigation: Liquidity and Debt Management
While Baotou Steel's debt-to-equity ratio of 1.2 is higher than the industry average, its liquidity metrics are robust. A current ratio of 1.40 and a quick ratio of 0.98, supported by an operating cash flow of CNY 8.1 billion in 2023, ensure the company can service debt and fund growth. Recent bond issuances, including a RMB 3 billion offering in early 2023, have provided flexibility for capital expenditures and refinancing.
Investment Thesis: A Strong Buy in a Rebounding Sector
The convergence of technical and fundamental factors makes Baotou Steel a prime candidate for capital appreciation. Its 40% profit surge reflects improved operational efficiency and strategic diversification, while technical indicators suggest a high probability of continued price momentum. For investors seeking exposure to a cyclical rebound in steel, Baotou Steel offers a compelling risk-reward profile:
Entry Point: Current price of $2.99, with a projected 58.72% rise by November 2025.
Stop-Loss: $2.88 (-3.52%), protecting against short-term volatility.
Valuation: A P/E ratio of 8.5 and P/B ratio of 1.2 indicate undervaluation relative to peers.
Conclusion
Inner Mongolia Baotou Steel Union's 40% profit surge is not an isolated event but a harbinger of a broader steel sector recovery. With technical indicators flashing green, fundamentals strengthening, and macroeconomic tailwinds in place, the stock represents a rare convergence of momentum and value. For investors with a medium-term horizon, this is a strong buy opportunity in a sector poised to outperform.
Final Note: As with all cyclical investments, monitor global economic data and steel price trends for signs of overbought conditions. However, Baotou Steel's operational resilience and strategic positioning make it a standout in a rebounding industry.

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