China Coal Energy Co., Ltd, the listed arm of China National Coal Group, sold 10.45 million tonnes of commercial coal in February, rising 13.6% year on year and surging 57.6% month on month, the company said in its latest statement.
Of the sales, 7.18 million tonnes were self-produced commercial coal, increasing 23.4% year on year and up 48.7% from January.
The increased sales were partly attributed to increased demand from downstream utilities. Data showed that daily coal consumption of China's six major coastal power companies averaged 550,500 tonnes in February, up 40.7% from an average of 391,300 tonnes in corresponding period last year.
In the first two months, the company sold 12.01 million tonnes of commercial coal, falling 10% from the year before.
China Coal produced 6.34 million tonnes of commercial coal in February, up 4.4% year on year but down 8.1% from a month earlier.
The production during January-February stood at 13.24 million tonnes, sliding 1.1% from the year prior.
China's coal market began to gain upward momentum in mid-February, thanksto recovery of economy, low hydropower generation and relatively low coal output at mines after the Lunar New Year.
Coal production has started to increase recently after the two parlimentary sessions ended in mid-March, and more mines in Yulin are getting back to production, said traders.
On March 21, coal stocks at Qinhuangdao port stood at 4.75 million tonnes, up 10.9% from 4.29 million tonnes on March 10.
China Coal expected its net profit to be 1.8 billion-2.2 billion yuan in 2016.
(Writing by Tammy Yang Editing by Harry Huo)
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