China's Coal Industry Group Revises Down 2024 Output Forecast

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China's coal industry has lowered its production forecast for 2024, with the country's top-producing region likely to miss its target.

Chinese coal production this year will vary by between a 1% annual decline and 1% growth this year, a major industry association said on Wednesday, revising down its previous forecast of a 1% increase in coal production. China’s top producing region, Shanxi, is likely to miss its coal production target for 2024, Li Xuegang, deputy chairman of the China Coal Transportation and Distribution Association CCTD, said on Wednesday, as carried by Reuters.

With the downward revision to China’s coal output for this year, CCTD’s Li expects coal prices to be supported. China has boosted its imports of coal so far this year, as it looks to stockpile fuel for the power plants ahead of the summer amid international prices that were half last year’s levels in the first four months of 2024. China’s increased coal imports so far this year are defying earlier expectations that Beijing would see flat coal purchases in 2024.

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