China's coal production in July fell to its lowest level for over a year

Data from the Statistics Bureau showed that China's output of coal in July dropped to its lowest level since April 20,24. This is the first decline year-over-year in 2025, a sign China's output may be easing due to an oversupply.

China produced 380.99 millions metric tons coal in July, a decrease of 3.8% compared to the previous year.

The first seven months of this year saw a total output of 2,78 billion metric tonnes, an increase of 3.8% compared to the previous six months.

Analysts have been watching closely to see if China will take steps to reduce production and curb the oversupply. They expect that the output may begin to drop in the second half of this year.

The expectation of a supply disruption prompted the coking coal price to reach its trading limit on successive days after a July 20 document by the energy regulator called for inspections of coal mines within eight provinces.

The document was not a coordinated government strategy, but it did bolster expectations that supply would be limited in the second part of the year. (Reporting and editing by Colleen Waye)

(source: Reuters)