NBS: China’s raw coal output drops to near 5-year low in July

• China’s July coal output hit a near-five-year low amid stringent safety inspections
• Slow mine restarts and cautious operations continue to constrain supply

China’s raw coal production in July dropped to the lowest level in nearly five years, according to National Bureau of Statistics (NBS) data published on Monday, mainly reflecting the protracted restraints on domestic mine operations amid frequent mine-safety inspections.

According to the NBS data, China’s raw coal output stood at 343.21 million tonnes in July, down 9.9% on month and 10.1% on year, Mysteel Global calculated. This also marked the lowest monthly level since September 2021, exclusive of the averages for January-February when domestic industrial production is affected by the Chinese New Year holidays that fall within one of the two months.

The nationwide production downtrend was consistent with Mysteel’s mine-level data which show constrained operations among Chinese miners amid ongoing mine-safety inspections. Since late May, China’s central and local governments have conducted rigorous investigations to uncover illegal or unsafe mining practices, with many mines ordered suspended for rectifications, as reported.

According to Mysteel’s survey of 523 coking coal mines across the country, during July their raw coal output averaged only 1.5 million tonnes/day, lower by 3.3% than June’s 1.56 million t/d and making for the lowest daily average since Mysteel began tracking the data in 2021. On a yearly basis, the July volume was down by a larger 22%.

Likewise, the 462 thermal coal mines tracked by Mysteel also saw their average raw coal output fall to 5.32 million t/d in July, down 1% on month and 5.4% on year, according to Mysteel’s tracking.

Although some suspended mines have gradually resumed operations, the pace of restarts remains slow as authorities continue to tighten safety requirements. Some producers are also maintaining reduced operating levels to limit safety risks, according to market sources.

“Resumptions among suspended mines remain slow because of the stringent inspections of local authorities,” noted a market analyst. “At the same time, operating mines are slowing output to reduce the risk of accidents,” he added.

Over January-July, China’s cumulative raw coal production totalled 2.7 billion tonnes, down 2.9% from the same seven months of last year, according to the NBS data.

Meanwhile, China’s production of coke for all uses reached 41.35 million tonnes in July, down 1.6% from June and 1.1% on year. Over January-July, the cumulative output totalled 294.2 million tonnes, up 1.2% on year however, the NBS data showed.

Note: This article has been published in accordance with a content exchange agreement between Mysteel Global and BigMint.