China March coal output dips 4.5 percent

China produced 294 million tonnes of coal in March, down 4.5 percent from a year ago amid state-led efforts to restrict production and tackle a supply glut. Chinese coal output over the first quarter reached 811.27 million tonnes, down 5.3 percent on the year, according to data from the National Bureau of Statistics published on Friday, with miners under pressure to limit output to shore up prices. Coking coal output for use in steel production also fell 5.3 percent in the first quarter on the year to 36.05 million tonnes.
Prices at the port of Qinhuangdao in Hebei province have gained 5.4 percent so far in 2016, suggesting that China's efforts to curb supplies are having an impact, although the values are still down 20 percent from a year ago. Analysts forecast that prices will recover further in the coming months, with power plants starting to restock after letting inventories run low in the first two months of the year.