Daqin railway May coal delivery drops 20.6% YoY

sxcoal.com Inland Shipment 2020-06-10 09:11:41

Daqin railway, core asset of Daqin Railway Co., Ltd, reported a 20.57% decline in May coal shipment compared with the preceding year, said the company in a statement on June 9.


The railway delivered a total 31.63 million tonnes of coal in May, increasing by 1.91 million tonnes or 6.43% from a month ago, indicating that supply capacity was enhanced greatly on the whole as influences of safety and environmental crackdowns during the "Two Sessions" and railway maintenance are subduing.



Daily coal shipment last month was 1.02 million tonnes, rising 29,600 tonnes from 0.99 million tonnes in April.


The number of heavy-haul trains averaged 68.6 each day, 49.5 of which were 20,000-tonne trains.


In the first five months, Daqin railway shipped a total 148.68 million tonnes of coal, marking a decrease of 18.48% year on year, with decline quicker than a drop of 17.89% in January-April.


The year-on-year decline in coal shipment showed the impact of the Covid-19 epidemic on the economy still exists, as energy consumption of downstream enterprises has not returned to normal. However, this is also directly related to the maintenance of the Daqin Line in April last year.


In addition, the data also reflects that the overall shipment volume of the Daqin line has decreased. The implementation of "energy consumption control" in East China has a great impact on coal consumption and power consumption, and there is little growth room for coal consumed by power plants in coastal areas.


At the same time, hydropower, nuclear power, new energy and other non-fossil energy consumption levels have increased. The cross-regional power transmission has increased significantly, and the inbound power transmission to the Yangtze River Delta and the Pearl River Delta has increased, restraining coal-fired power generation and the consumption of thermal coal.


Mengji and Shuohuang rail lines are increasingly playing a larger role in shipping part of Inner Mongolian coal to Huanghua and Caofeidian port, which also squeezed coal inflows of Daqin line.


(Writing by Tammy Yang  Editing by Jessie Jia)
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