China's coal production strongest since winter, hit a new record last year

Coal production in China strengthened again this June, reaching its highest level since the start of the year. Production growth is being driven in part by strong seasonal demand, as electricity consumption for cooling rises during the hot summer months. Despite the continued development of renewable energy sources, coal production in China keeps increasing, reaching a new annual record last year.

China's coal mines increased production again in June, extracting more than 405 million tonnes of coal, according to Reuters. Data from the country's statistics office also showed that monthly production was at its highest since last December and 3.6% higher than in June 2023.

In addition to stronger demand linked to higher electricity consumption on hot summer days, other factors also contributed to the increase in production. Analysts at Galaxy Futures cited a decline in the number of fatal accidents as one of them, allowing some mines to resume production. This spring, extensive inspections ordered by local authorities had restricted production because of a rise in fatal accidents.

Coal production in China continues to grow

June was not the only period of strong coal production; output was also high throughout last year. According to Reuters, coal production in China reached a new record last year, at 4.66 billion tonnes. This was a 2.9% increase compared with 2022. Analysts therefore expected coal production to rise further as early as the beginning of this year.

From a global perspective, China also dominates the development of renewable energy sources. According to a recent report by the non-governmental organization Global Energy Monitor, twice as much solar and wind capacity is currently under construction in China as in the rest of the world.