China Coal Production Drops 6.8 Percent in September
China reported a 6.8 percent year-over-year decline in September coal production amid stricter safety regulations and high inventories.
China's coal production fell 6.8 percent year-over-year in September to 385 million tons, although output showed an increase over August figures. The Government of China curbed production due to high inventories and lower early-year demand from power generators. Coal imports also declined 5.7 percent compared to September 2025, totaling 43.37 million tons.
Supply pressures contributed to a 24 percent rise in spot thermal coal prices since mid-July. This tightening was exacerbated by a deadly mining disaster in May, which prompted authorities to implement stricter safety checks and suspend operations at several mines in the Shanxi region.
Production and power generation trends may reverse as winter approaches to meet peak heating demand. On a global scale, the International Energy Agency expects coal demand to reach an all-time high this year, noting that high liquefied natural gas prices are driving a shift back to coal.
