China Coal production is expected to raise by 2.7% to around 3.8 bnT at the end of FY14 (1 Jan’14-31 Dec’14), said CNCA on Thursday.

China National Coal Association (CNCA) anticipated that Chinese Coal Production will increase slightly by 2.7% to 3.8 bnT.

China has imported totaled 320 MnT of Coal in FY13, which increased by 14.2% against FY12. The fixed asset investment in the Coal Industry hits CNY 470.7 billion (USD 77.16 billion), said CNCA

The association forecast that Coal imports would also remain at around 300 MnT in the end of the FY14, owing to restriction by Chinese Government on low quality Coal import & consumption.

“The maturity & economic feasibility of replacement energy technologies wait for improvement and national Coal demand will maintain its low rate of growth”, said by the association.

China is more concern about air pollution, hence continuously increasing efforts to control it. China is trying to cultivate consumption from other sources like hydro & nuclear; also expecting 2%-3% per year production growth in next five years. Beijing plans to reduce the consumption of Coal in its energy mix to less than 65%, which is down from 65.7% last year. 

Coal Consumption

According to CNCA, China’s Coal consumption growth slowed in FY13, with weak domestic Coal prices. Price gap between domestic and overseas markets still seems attractive.

“The sector faces more challenges as the country puts greater emphasis on economic restructuring and transforming the growth pattern. Tackle production capacity and improving environmental protections are helping upgrade the Coal Industry”, said Jiang, CNCA vice president.