China’s weak industrial recovery is weighing on coal consumption
China’s weak property market and sluggish industrial activity are weighing on coal prices even as a spate of government safety checks curbs output.
Key industrial users of the fuel including steel mills and cement plants are demanding more discounts on coal purchases to help cover losses, and many have curtailed operations, Chao Yuke, an analyst with the China Coal Transport and Distribution Association, said at a briefing on Wednesday.
The poor demand is underscoring the uneven nature of the economy’s rebound. While people are flocking to restaurants and boarding trains and planes in massive numbers, weak housing sales and muted industrial activity are capping demand for manufacturing raw materials like copper and coal. Last week’s reading from purchasing managers showed the factory sector contracting in April for the first time this year.
China’s coal miners held about 68 million tons in inventory at the end of April, 21% more than at the same time last year, CCTD analyst Feng Huamin said. The healthy stockpiles should shield coal prices from the impact of safety inspections that have halted output at mines with nearly 50 million tons of annual capacity, equivalent to over 1% of China’s output last year.
Benchmark coal prices at the trading hub of Qinhuangdao were last quoted at 992 yuan a ton, down 16% from the start of the year.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...
VISIT SHOWROOM
Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
