China’s coal production is rising to meet energy demand

China’s coal output rose 2.8 percent in July from a year earlier as mines increased production to ensure a steady supply amid record heat, data from China’s statistics bureau showed, even as output of thermal energy has decreased while hydropower production has increased.

That Reuters reports, the world’s biggest polluter and biggest coal producer extracted 390.37 million metric tons of the fuel last month, according to data from the National Bureau of Statistics on Thursday, which, while down from June’s 405.38 million tonnes, which was the highest level since December 2023, was the highest ever recorded for July, surpassing the previous record set in 2023 at 378 million tons. .

Average daily coal production in July was 12.59 million tonnes, down from 13.5 million tonnes per day in June but up from 12.18 million tonnes a year earlier.

China’s national energy regulator said in late July it was coordinating coal stockpiles at power plants to keep them at a minimum of 200 million tonnes due to continued warm weather.

Thermal power production disappointed the coal industry in July, however, falling for a third consecutive month as more hydroelectricity was generated due to heavy rains in July. China’s thermal power output fell 4.9% to 574.9 billion kilowatt-hours (kWh), even as total power output rose 2.5% to 883.1 billion kWh , the statistics show.

Output was lower, particularly in China’s coking coal hub of Shanxi province, which produced 29 percent of China’s coal last year. Production was limited there after the local government told miners to cut excess production and announced increased safety controls between March and May.

But other provinces were more than happy to play along. Most of the additional output came from the country’s second-largest producing region, Inner Mongolia, a record 104 million tonnes from 97 million a year ago…

… and fourth-largest producer Xinjiang, which added a record 41 million tons from 33 million:

Hydropower production for the month was up 36.2% year-on-year to 166.4 billion kWh.

China’s growing coal-to-chemicals industry is offsetting some of the slowdown in coal-based power demand, with chemical coal consumption up 21 percent in the first half of the year, wrote Lauri Myllyvirta, senior fellow at Asia Society Policy . Institute.

“China’s development of energy security and the drop in coal prices relative to the price of oil have caused a boom in this industry,” Myllyvirta said.
Analysts said they expected China’s coal output to continue rising into the third quarter amid warmer weather and as output recovers from a drop earlier in the year due to safety inspections.

By Zerohedge.com

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