BEIJING: China’s November coal output jumped 6.5% from the previous month to the highest level since March, official data showed on Friday, as colder weather led to increased demand for the fuel.
The world’s biggest coal producer mined 414 million metric tons last month, according to the National Bureau of Statistics, which was also 4.6% higher than the year-earlier level.
Daily output averaged over the month hit a record 13.8 million tons, higher than the March level of 13.5 million, according to Reuters calculations.
Cooler weather across parts of northern and southern China boosted coal demand from early November, pushing up domestic spot prices.
Overall power generation, which is dominated by coal-fired plants, rose 8.4% in November compared to a year ago when COVID-related lockdowns hurt industrial activity and power demand.
However, despite the high output, production growth is slowing, said Toby Hassall, lead analyst for coal market research at LSEG.
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“While the daily rate was a new record, the outcome was consistent with a trend of softer growth and consolidation this year following the rapid expansion in output over the prior two years,” said Hassall.
Inventories are currently at “comfortable” levels, he said, with stocks at major northern China ports up 23% on the same time last year.
China’s total coal production for the first 11 months of the year stood at 4.24 billions tons, up by 2.9% from 2022, the data showed.
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