Market - - Mar 14,2017
It has been noted that Chinese coal output dropped 1.7 percent in the months of Jan-Feb even after the government pushed miners to fasten the output during the winter season.
The Chinese government reversed its tough measures to trim the country’s dependence on different fossil fuels and insisted miners to replenish supplies by increasing coal output.
However, as per the statistics gathered for the first two months of the year, China’s coal output has dipped by a significant value of 1.7 percent.
The National Bureau of Statistics reported that miners produced 506.78 million tonnes of coal in the month of January and February. These figures are quite low as compared to 513.5 million tonnes and 546.5 million tonnes in the first two months of 2016 and 2015 respectively.
The Chinese government reformed its ways in the month of November by lifting the limit on operational days for the thermal coal miners in a particular year. This step was taken to fulfill surging demand from utilities during the months-long winter season.
However, superior coal miners have been assertive towards Beijing to restore the limits on output in a situation of fading demand and growing supply after the prime winter heating season.
China’s economic planning body, the National Development and Reform Commission, officially stated that it does not hold any such plans regarding large-scale coal outputs, calming fears of the 276-day (reduced working days for miners) restoration. The NDRC is in no mood to repeat the drastic effects hampering the coal prices which occurred last year due to its intervention.
There is another recent news which states that China plans to curb 150 million tons of annual production capacity by closing down old and unproductive mines.