China's coal production and sales were lower in June, compared with year-ago levels and the previous month, data released Wednesday by the China National Coal Association showed, as sluggish demand and falling prices weighed on miners.
China produced 298 million mt of raw coal in June, down 2% from the previous year and down 0.7% from May, the third consecutive month-on-month decline, the data showed.
Over January-June this year, China's coal output reached 1.816 billion mt, down 1.8% year on year, CNCA said.
During the same period, China's coal sales -- which comprise mostly domestic sales and some exports -- stood at 1.727 billion mt, down 2.1% year on year, with June sales falling 2.3% year on year and edging down 0.7% month on month to 284 million mt.
By the end of June, stocks at Chinese coal companies hit a record high of 99 million mt. Key power plants held a total 79.06 million mt of coal, enough to last for 23 days of consumption.
In June, China's railways transported 185 million mt of coal, up 0.8% year on year but down 2.0% from May. In the first half of this year, coal railings totaled 1.15 billion mt, edging up 0.7% from the year before.
China's coal sector has been hit hard by sluggish demand caused by slowing industrial activity, stronger hydropower output and the government's battle against pollution. Domestic prices of thermal coal used for power generation have shed more than 22% since the start of this year.
The Platts/Fenwei China Coal Index for domestic 5,500 kcal/kg NAR coal traded at Qinhuangdao port was assessed at Yuan 483/mt, inclusive of 17% VAT, on Wednesday, down from Yuan 622/mt at the start of the year.
Fenwei Energy is a leading provider of coal market information in China.
