China’s September coal output rose 0.4% from August to the highest level since March, official data showed on Wednesday, on rising power demand as economic activity picks up.
Total output in September was 392.98 million metric tons, according to data from the National Bureau of Statistics, or 13.1 million tons per day, compared with an average of 12.71 million tons daily so far this year.
Miners ramped up production last month to meet rising demand for power generation as economic activity in China picked up after the summer on a raft of economic stabilization measures.
China’s coal-fired electricity output rose by 2.3% year-on-year in September, the statistics bureau data showed.
Power demand increased by 9.9% year-on-year in September, the National Energy Administration said this week, beating expectations, Daiwa analysts said in a note.
Coal output over the first nine months of 2023 stood at 3.44 billion tons, up 3% compared with the same period last year, and putting China on track for another year of record coal production.
In 2022, domestic producers mined 4.496 billion tons of coal, the highest level ever.
Production will likely continue to increase in the fourth quarter as mines have resumed normal operations following accidents, and state-owned miners raise production to ensure sufficient supply during the winter, according to analysts from the China Coal Transportation and Distribution Association.
The production of coke used in steelmaking rose 3.6% in September to 41.44 million tons, with year-to-date output reaching 368.31 million tons, up 2.6%.
Source: Hellenic Shipping News
