In the first four months of this year, China's coal production and fixed asset investment in the coal sector both saw negative growth, marking a significant shift in the industry. Total coal output reached 1.15 billion tons, a decrease of 23 million tons compared to the same period last year, representing a 2% decline. Meanwhile, coal-related fixed asset investments fell by 6.6% year-on-year, signaling a slowdown in new development projects.
Wang Xianzheng, president of the China Coal Industry Association, highlighted that the national coal economy has experienced major transformations since last year. Demand for coal has slowed, leading to declining profitability for many enterprises, with some even facing losses. In addition to the "two negatives" in production and investment, the sector is also witnessing "two highs" and "two declines."
The "two highs" refer to the persistently high levels of coal stockpiles and continued high import volumes. Currently, total social coal inventories stand at 292 million tons, which is about 150 million tons above normal levels. This excess inventory is proving difficult to reduce. At the same time, coal imports have surged, reaching 110 million tons in the first four months—an increase of 25.6% compared to the same period last year. This influx has significantly impacted domestic market dynamics.
The "two declines" are reflected in the sharp drop in economic performance of coal companies and falling coal prices. In the first quarter, revenue from coal enterprises above a certain size decreased by 2.6%, while profits plummeted by 40.3%. Some large coal groups reported losses, and several companies faced delayed wage payments. Additionally, coal prices have declined, further squeezing profit margins.
In response to these challenges, Wang emphasized the need to enhance the long-term stable supply of coal nationwide and to closely monitor the restructuring of the coal industry. He also called for increased attention to the impact of the economic downturn on mine safety. Strengthening responsibility and improving hazard management—such as addressing gas and water risks—are essential to ensuring safer operations and better security for workers.
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