China's first-half coal output rises 5% on the year
BEIJING - China's coal output in the first six months of the year rose 5% on the year, data from the statistics bureau showed on Tuesday, as authorities focus on ensuring sufficient supply of the fuel as buyers switch to cheaper domestic coal over imports.
First-half output in 2025 stood at 2.4-billion tons, while production for the month of June rose 3% on the year to 421-million tons.
The higher output has led to oversupply as China looks to substitute domestic production for imports.
"Currently the key factor shaping price sentiment is domestic production," Kpler analysts said in a research report on Monday.
"The market is watching closely to see whether mining regions will reduce output to alleviate the current oversupply."
Domestic coal prices, which had languished at four-year lows since February, started to inch up in early June with the onset of hotter weather, which boosts use of air-conditioners.
The price of medium-grade 5 500 kilocalorie per kilogram coal rose from 618 yuan ($86) a ton on June 9 to 630 yuan on July 14, a government index showed.
China's coal output could still see a "modest" decline this year from a record last year, LSEG analysts said in a note last week.
However forecasts vary widely.
Industry body the China Coal Transportation and Distribution Association expects coal output to rise by 70 million to 80 million tons this year, thanks to the cutbacks on imports, an official told the Coaltrans China conference last month.
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