China’s June coal output rebounds from six-month low

BEIJING (Reuters) – China’s average daily coal production rebounded in June from a six-month low in the prior month, official data showed on Monday, as miners ramped up output to meet increasing demand for power amid a heatwave in the country.

China churned out 390.1 million metric tons of coal last month, up 2.5% from a year earlier, and up 1.2% from May, data from the National Bureau of Statistics (NBS) showed on Monday.

The daily production in June was equivalent to 13 million metric tons, up from 12.43 million metric tons in May, which marked the lowest level since October 2022.

Coal output during the first half of 2023 reached 2.3 billion metric tons, 4.4% higher than the same period last year.

China’s mining safety watchdog has tightened inspections since late June after two deadly accidents occurred in the Shanxi and Liaoning provinces, limiting some production.

Chinese mines are known to be among the deadliest in the world and the country has carried out several rounds of mining safety checks since late February following an accident in Inner Mongolia that killed dozens of people.

Meanwhile, increased coal supplies and sluggish industrial demand have led to a pile-up of inventories at utilities and ports while coal prices remain depressed.

Some miners were forced to cut output due to thin margins and sluggish sales.

The average operations rate at major coal mines in the hubs of Shanxi, Shaanxi and Inner Mongolia fell to 82% in June from 84% in May, data compiled by the China Coal Transportation and Distribution (CCTD) showed.

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