China's raw coal production totaled 334.28 million tonnes in June, down 1.2% from June 2019 but up 4.84% from May 2020, data from the National Bureau of Statistics showed on July 16.
The daily average output stood at 11.14 million tonnes in June, a slight rise of 0.86 million tonnes from May, data showed.
The country's total coal production edged up 0.6% year on year to 1.81 billion tonnes in the first six months, whereas output fell by 0.5% in the first three months, indicating the mining operation accelerated in the second quarter.
In June, the increase in coal supply was limited under the strict control of coal sales quotas in Shaanxi and Inner Mongolia. Together with factors like growing demand alongside recovering economic activities and intensified safety inspections at mines, the overall supply remained in a shortage.
The shortage helped fuel a wave of price rise in June, with the benchmark 5,500 Kcal/kg NAR thermal coal prices up nearly 25 yuan/t over the month assessed by Fenwei CCI 5500 index.
The supply tightness continued in July, leading to another wave of price rise. According to a meeting held by the National Development and Reform Commission last week, the state planner urged coal mines to boost production.
The latest news said China's top coal producer CHN Energy restarted spot sales, indicating the supply tightness have been much alleviated.
By far, China has 52 coal mines with an annual capacity up to 10 million tonnes, totaling 821 million tonnes per annum, accounting for one fifth of China's total, 36 of which are state owned.
(Writing by Alex Guo Editing by Jessie Jia)
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