- China Energy’s Shenhua logs 4% m-o-m decrease
- Cooling temperatures limit power demand in Sep
Mysteel Global: The combined output of raw coal among China’s top 10 mining companies totalled about 197 million tonnes (mnt) in September, lower by 1.5% from August, Mysteel Global calculated based on the year-to-date statistics from the China National Coal Association (CNCA).
Among the ten companies, industry leader China Energy Investment Corp, headquartered in Beijing, recorded the largest decline in production, with its September output down by 2.6% or around 1.3 mnt from August at 51 mnt. This decline coincided with the weaker performance in September of the company’s major listed arm, China Shenhua Energy Co., Ltd., Mysteel Global observed.
As reported, China Shenhua’s saleable coal output dropped 3.5% m-o-m to 27.6 mnt in September, as thermal coal demand from the power sector waned during the month after temperatures cooled in many regions nationwide. China Shenhua mainly produces and sells thermal coal, with power plants and coal trading companies being its major customers, Mysteel Global notes.
Other major Chinese thermal coal miners among the ten companies, such as Shandong Energy Group, Huaneng Group and State Power Investment Corp, also seemed to have reduced their production in September in response to the market slowdown. This also contributed to the ten companies’ overall output decline, according to the association’s numbers.
Over January-September, the top ten companies’ cumulative raw coal production totalled 1.78 billion tonnes, up 1.3% from the corresponding months of last year and equivalent to 49% of China’s total coal output of 3.57 billion tonnes over the same period, according to the CNCA.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.
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