Coal production in China during the Jan-Nov16 period saw a 15.2% decline compared with the production in the same period of the last year. According to the latest data released by China’s provincial bureau of statistics, 738 MnT of coal was produced in the country during the period.
Exhibiting a similar trend, coal production there was lower by 9.4% at 74.9 MnT in Nov this year than the year-ago period.
The declining production has been an outcome of the efforts of the Chinese government to lower production to impart parity between demand and supply.
The government is stressing upon cutting down production in view of the rising pollution. A target of cutting down coal production capacity by 250 MnT within 2016 was set; and working days in coal mines were lowered to 276 days a year. The production decline raised coal price by around 60%.
Already, 25 coal mines, with the cumulative capacity of 23.3 MnT, were shut-down in the Shanxi region by Oct’16, as part of production cutting effort.
Leave a Reply