China’s coal output rose 10.3% in the
first two months of 2022 from a year earlier, after Beijing encouraged miners
to ramp up production for the winter heating season, with demand also receiving
a boost from Indonesia’s export ban.
The world’s biggest coal miner and
consumer produced 686.6 million tonnes of the dirty fossil fuel during
January-February period, up from 617.59 million tonnes in the same period in
2021, the National Bureau of Statistics said on Tuesday.
The bureau combines data for January
and February due to the Lunar New Year holiday, which fell in early February
this year.
The bureau combines data for January
and February due to the Lunar New Year holiday, which fell in early February
this year.China urged state-owned coal miners
to increase output ahead of the festival and ordered them to operate normally
during the holidays to ensure market supply and cool prices. But the daily output in the first two
months remained lower than the record high level of 12.4 million tonnes set in
December, as private-owned miners shut down for the holiday.
Power plants were also ordered to
build up and maintain coal inventories equivalent to at least 15 days’ use. Indonesia, China’s largest overseas
coal supplier, imposed a shock ban on shipments on Jan. 1. This boosted demand
for China’s domestic coal as seaborne shipments were delayed and regional
benchmark prices surged.
However, surging domestic cases of
Covid-19, especially in the top mining region of Inner Mongolia, are
challenging coal production and transportation.
The major coal shipping railway
connecting Datong and Qinhuangdao, with annual transportation volume at 421
million tonnes, is expected to carry out annual maintenance in April. China’s most-active thermal coal
contract for May delivery rose more than 4% in early Tuesday trade before
easing to 2.8%.
Source: https://www.mining.com/web/chinas-jan-feb-coal-output-jumps-10-3-for-winter-heating/
Source: https://www.mining.com/web/chinas-jan-feb-coal-output-jumps-10-3-for-winter-heating/
Image source: www.mining.com
Source Link: https://www.mining.com/web/chinas-jan-feb-coal-output-jumps-10-3-for-winter-heating/
