China's coal output grows amid efforts to stabilise production

16 Mar '22

2 min read

Pic: Shutterstock

The Chinese coal market has witnessed growth in output since late February amid the country's efforts to stabilise production and ensure supply, according to the National Development and Reform Commission, the top economic planner. The country's daily coal output has maintained more than 12 million tonnes since late February, up by 10 per cent year on year.

The daily output of Shanxi province, the Inner Mongolia Autonomous Region and the Shaanxi province was over 9 million tonnes, the commission said, noting that high output has driven the coal supply to further rise.

The coal storage in China's power plants stood at 149 million tonnes, adding over 30 million tonnes from a year ago, official media outlets reported.

Amid improving policies to stabilize production and supply, the coal output is expected to remain high and gradually increase, providing a solid foundation for stable coal prices, the commission added.

After facing difficulty in energy production last year, China is pushing green energy to decrease the demand for coal, and thereby ensure sufficient availability of coal at reasonable prices this year. The country has prioritised energy sufficiency, is stressing on improving mining technology, and improved pricing mechanism for coal-fired power stations.

The Inner Mongolia autonomous region in North China is estimated to have produced more than 1.05 billion metric tonnes of coal in 2021, a rise from 1.006 billion tonnes in 2020. The region ranked first in China in terms of its coal delivery volume compared to other provincial-level regions last year.

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