Major task for China’s coal industry in H2 remains ensuring supply, stabilizing price; problems still exist in coal production – industry body

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The China Coal Industry Association and the China Coal Transportation and Distribution Association (CCTDA), the two largest coal industry bodies in the country, held a meeting on July 22 about coal market operations in the first half of the year, according to a statement released by the CCTDA.

Given the complex international situation and the expectations of domestic economic recovery, the major task for the industry in the second half of the year remains ensuring coal supply and stabilizing coal prices, according to the statement.

Problems still exist in the coal market, including that some coal mines are in continuous high-intensity production, with some even conducting production at higher than approved capacity, posing a threat to production safety; coal miners make an all-out effort to ensure coal supply to power generators, squeezing supplies to other industries, leaving possible coal supply gaps in metal smelting and building material industries; coal miners in some regions face excessive pressure from upper authority on production; the capacity of railway coal transportation remain tight, posing additional challenges to the task to ensure coal supplies; and the progress in new coal capacity approval is slower than expected, said the association.