China's domestic coal market didn't experience an overall slowdown in demand and prices this March, traditionally a season of weak demand, mainly due to the tightening supply in main coal producing areas. Coal price fell only slightly in some areas amid the generally stable supply and demand scenario.

Supply and Demand
Coal production was stable in China, and outputs of local state-owned mines and township mines increased gradually following the resumption of medium and small mines. Total raw coal output grew 7.8% from a year earlier to 486 million tons in the first three months, with output in March reaching 170.04 million tons, growing 23.2% from the previous month and up 9.4% year on year, according to data released by the State Administration of Work Safety.

China’s industrial production maintained a high rate of growth. Total production value reached 3109.4 billion yuan in March and 9592.6 billion yuan in the first quarter, growing 17.8% and 26% year on year respectively.

Production of Four Major Coal-consuming Industries
Unit: 1000 tons

The demand for coal is mainly from four major industries including the electric power, metallurgy, building materials and chemicals, which account for above 85% of the total coal demand in China. Fast expanding domestic economy boosted a rapid growth maintained in these industries, which in turn bolstered a steady increase on the demand for coal. In March, China consumed 211 million tons of coal, growing 7.66% from 196 million tons in January, and up 25.6% from 168 million tons in February.

Coal Consumption of Four Major Coal-consuming Industries
Unit: 1,000 tons