Coal production in China in Dec’16 was at 311 MnT, which was up by 1% against the production in Nov’16, the recently released data by the National Bureau of Statistics shows. The production during the month, however, was lower by 3% in comparison with the production in the same month of the previous year.
The rise in the production is attributed by market experts in that country to the higher consumption by power utilities during the winter season.
In contrast, coal production in that country during the entire 2016 is reported lower at 3.64 BnT, a fall of 9% against the production in 2015. The drop in production during the month, the biggest since 1998, originated due to the efforts of the Chinese government to cut down production to rationalize supply with demand and, at the same time lower pollution levels. As part of the efforts, around 315 MnT of coal capacity was slashed during the year.
Remarkably, the production during Dec’16 also represents the highest monthly output among all the individual months of 2016.
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