China’s coal output dips on high stocks, weak demand

SINGAPORE/BEIJING: China’s daily coal output fell in May from April, data showed on Thursday, as miners lowered production to ease inventory pressure amid tepid demand.

China produced about 385.5 million metric tons of coal last month, National Bureau of Statistics (NBS) data showed, equivalent to 12.44 million metric tons per day.

That was down from 12.72 million metric tons in April, and compared with 12.09 million metric tons a year before. Production over the January-May period was 1.91 billion metric tons, 4.8% higher than a year earlier, the data showed.

Average utilisation rates at 442 major coal mines in China’s top mining hubs, Shanxi, Shaanxi and Inner Mongolia, dropped to 83.5% in May from 85.2% in April, according to data compiled by the China Coal Transportation and Distribution Association (CCTD).

Coal inventories at Chinese ports and major coal-fired power plants hit near record high levels in early June as the country struggled with economic recovery from COVID-19 curbs and shrinking exports that dented power consumption at manufacturers.