China’s daily coal output hits record high

China's coal output rose 15 per cent in March from the same month a year ago, with daily production climbing to a record, as Beijing urged miners to crank up operations to ensure steady market supply.

China churned out 395.79 million tonnes of coal last month, data from the National Bureau of Statistics (NBS) showed on Monday, equivalent to 12.77 million tonnes per day.

That compares with 10.99 million tonnes per day in March 2021, and 11.64 million tonnes per day for the first two months of 2022.

China has targeted daily coal production at 12.6 million tonnes this year, as Beijing has prioritised energy security in the wake of geopolitical uncertainties caused by the Ukraine conflict.

Output over the first quarter of the year reached 1.08 billion tonnes, up 10 per cent on the year, NBS data showed.

Coal inventories at major utilities in eight coastal provinces totalled 28.18 million tonnes in early April, according to analysts from Changjiang Securities, about 6 million tonnes higher than the same period last year.

But coal consumption at the utilities was 12 per cent lower than a year ago, partly reflecting lockdowns, factories suspending operations and restrictions on mobility in cities like Shanghai, where Covid-19 infections have flared up.

The anti-Covid measures also affected production and transportation at some mines in Shanxi, the major coal mining region.