Coal output in China's major mining regions falls in Apr'26: NBS

• Coal supply adequate despite lower April output
  
  
• Production may decline in May-June on stricter safety checks
  
  

Mysteel Global: Raw coal production in China's five largest coal-producing regions edged lower in April, as seasonal weaknesses and transportation constraints weighed on mining activity. Even so, the country's overall coal supply remained relatively sufficient and broadly in line with demand.

The five key producing regions -- Shanxi, Inner Mongolia, Shaanxi, Xinjiang and Guizhou -- brought a combined 324.49 million tonnes of raw coal to market in April, down 0.9% year on year, according to data released by the National Bureau of Statistics (NBS). Together, they accounted for 84.1% of China's total coal output.

National raw coal production stood at 385.63 million tonnes last month, down 1% from a year earlier, the NBS data showed.

Among the major producing regions, North China's Shanxi province regained its position as China's largest coal producer in April, with output reaching 107.23 million tonnes despite a 3.2% year-on-year decline. Neighboring Inner Mongolia ranked second with production of 99.92 million tonnes, up 1.7% from a year earlier.

April is traditionally a shoulder month for both coal consumption and production in China. With winter heating demand ending and large-scale summer cooling demand yet to fully emerge, overall power loads are usually lower during this period. Many utilities firms arranged to undertake unit maintenance over the month, reducing coal consumption and eventually weighing on production at mines.

Meanwhile, during April the 27-day spring maintenance period on the Datong-Qinhuangdao railway -- China's coal transport conduit linking Shanxi's Datong city to Qinhuangdao port in the Bohai Bay also affected coal shipments from major producing hubs to northern ports, weighing on mining operations in regions such as Shanxi, Inner Mongolia and Shaanxi.

From January to April, the five major regions produced a combined 1.35 billion tonnes of raw coal, up 0.6% year on year, indicating that domestic coal supply has remained broadly stable so far this year.

Looking ahead, coal production in May and June could fall below year-ago levels. Following a fatal mining accident in Shanxi on May 22 that reportedly killed 82 people, major producing regions have launched extensive mine safety inspections.

In addition, June is traditionally designated as China's "Work Safety Month" across industrial sectors, meaning that mining companies are expected to promote safety awareness among employees that usually leads to slower operating practices.

Temporary production suspensions at certain mines could therefore become unavoidable this month and June, Mysteel Global understands.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.