cross-posted from: https://lemmy.sdf.org/post/35840245
- Despite having the world’s largest thermal power fleet, China is producing more coal than it can consume.
- This results in a 42% year-on-year (YoY) increase in mine stockpiles and a 25% annual rise in inventories at northern Bohai area ports.
- Chinese coal production continues to rise, with a 6.6% increase from January to April, reaching 1.58 billion tonnes.
- This production growth persists even as industry profits have plummeted by 48.9% YoY for the same period, as shown by official data.
China is pressing its coal-fired power plants to stockpile more of the fuel and import less in an effort to shore up domestic prices, sources with knowledge of the matter said, but traders are sceptical the measures will help to stop the slide.
The coal industry in China faces rising stockpiles of the fuel after a massive expansion of output following shortages and blackouts in 2021 is churning out more coal than even the world’s largest thermal power fleet can consume.
To support miners whose profits are under pressure, the state planner has asked power plants to prioritise domestic coal and increase thermal coal stockpiles by 10%, setting an overall target of 215 million metric tons by June 10, the sources said.
The sources spoke on condition of anonymity because they were not authorised to speak to the media.
[…]
China imported a record 542.7 million tons of coal in 2024, but the total is expected to fall this year. Coal imports slid 16% in April on the year.
[…]
Chinese mine production continues to grow despite the collapse in prices, with a government haunted by the shortages and blackouts of 2021 and 2022 unlikely to consider output cuts. “I think they’re very mindful to avoid a repeat of that,” said LSEG lead coal analyst Toby Hassall. “They will tolerate a period where some domestic production is really struggling.” China’s coal production rose 6.6% on the year during the period from January to April, to stand at 1.58 billion tons. Industry profits fell 48.9% year-on-year for the same period, official data showed on Tuesday.