China’s coal output hits 6-m high

China’s coal output reached a six-month high in June, according to data from the National Bureau of Statistics (NBS). Production surged to 405.38 million metric tons, a 3.6 per cent increase year-on-year (YoY), as seasonal demand rose and safety inspections that had previously limited output eased.

Analysts at Galaxy Futures attributed the increase to heightened demand for air conditioning during the Northern Hemisphere summer. They also cited a decline in mining accidents, allowing more mines to resume operations. In contrast, output from Shanxi, China’s main coking coal hub, had been restricted earlier in the year due to government safety measures following a rise in fatal accidents.

June’s average daily output was 13.5 million tons, the highest since December. Despite the June surge, total output for January-June was 2.27 billion tons, down 1.7 per cent from the same period last year. Analysts predict further output increases in the third quarter, although July growth may be limited by ongoing restrictions linked to China’s upcoming political meetings.

Attribution: Reuters citing NBS