- China’s coal production went high in July, surpassing the record for 2023
- Thermal power generation declined in July due to increased hydropower generation, but overall power generation increased
- Analysts expect China’s coal output to continue increasing in the third quarter due to hotter weather and recovering production.
China’s coal output rose 2.8% in July from a year earlier as mines ramped up production to ensure steady supply amid record-breaking heat, China’s statistics bureau data showed, even though thermal power output fell while hydropower generation surged.
Reporting Reuters OilPrice wrote, saying that the world’s biggest polluter and largest coal producer mined 390.37 million metric tons of the fuel last month, quoting the National Bureau of Statistics data, down from June’s 405.38 million tons – the highest level since December 2023, as well as the highest ever for the month of July, surpassing every record in 2023, at 378 million tons
Average daily coal output in July stood at 12.59 million tons, down from 13.5 million tons a day in June but up from 12.18 million daily tons a year earlier
Reporting China’s national energy regulator as saying that late in July, it coordinated power plant coal inventories aimed at keeping them at a minimum of 200 million tons, because of continuing hot weather.
Thermal power output disappointed the coal industry in July, falling for a third straight month, as more electricity was generated by hydropower because of heavy rains in July. China’s thermal power generation fell 4.9% to 574.9 billion kilowatt-hours (kWh) even as total power generation rose 2.5% to 883.1 billion kWh, the statistics showed, according to OilPrice.
It added that production was lower particularly in China’s coking coal hub of Shanxi province, producing 29% of China’s coal last year. This is as output was reported limited, after the local government told miners to curb excess production and announce stepped-up safety checks over the month – March and May.
Most of the extra output report indicated came from the country’s second-largest producing region Inner Mongolia, a record 104 million tonnes up from 97 million a year ago, and fourth-largest producer Xinjiang, which added a record 41 million tonnes up from 33 million.
Hydropower generation for the month rose 36.2% on the year to 166.4 billion kWh.
With reference to Lauri Myllyvirta, senior fellow at the Asia Society Policy Institute, report also disclosed that China’s growing coal-to-chemicals industry was really contributing to offsetting some of the slowing demand for coal-fired power, with coal consumption in the chemicals industry growing 21% in the first half of the year.
“China’s energy security drive and falling coal prices relative to oil prices have driven a boom in this industry,” Myllyvirta said.
Analysts have said they expect China’s coal output to keep increasing through the third quarter on the hotter weather and as production recovers from a slump earlier in the year due to safety inspections