About Us


Coal industry investment research report: thermal coal prices are expected to gradually stabilize after the rebound.

2018-05-18


Chinese mining companies have increased production after the government imposed restrictions on some coal imports. Bloomberg calculated based on data released by the National Bureau of Statistics on Tuesday that coal production increased 4.4 percent month-on-month in April to the equivalent of 9.78 million tons per day. Data showed that in the first four months of this year, production increased 3.8 percent to 1.1 billion tons.

Chinese mining companies have increased production after the government imposed restrictions on some coal imports. Bloomberg is based on a report released by the National Bureau of Statistics on Tuesday.DataCalculations show that coal production rose 4.4 percent month-on-month in April, reaching the equivalent of 9.78 million tons per day. Data show that in the first four months of this year, production increased 3.8 percent to 1.1 billion tons.

Policymakers in China, the world's largest coal producer, have sought to manage supply to the domestic market through a series of regulations, including greater scrutiny of overseas purchases. China last month reinstated import restrictions on some southern ports, benefiting local miners such as China Shenhua, China Coal Energy and Yanzhou Coal.

Domestic coal production rose against a backdrop of import restrictions pushing prices back up, Daiwa Securities analysts said DennisIp ahead of the data.

As of Monday, spot coal prices in Qinhuangdao had risen to 618 yuan, off a 10-month low of 564 yuan hit in April. This rebound has triggered a series of forecasts by JefferiesGroupLLC and other institutions, which expect the rally to be unsustainable because supply will pick up.

Natural gas production is holding steady as China strives to shift to cleaner energy. The daily output of natural gas in April fell 1.3 percent from March to 0.43 billion cubic meters, and the supply from January to April increased 4 percent from a year earlier to 52.6 billion cubic meters.

Key words:

Return to List