China's coal production in the first half of this year is up 5%.

Data from the Statistics Bureau showed that China's coal production in the first half of the year increased 5% compared to the previous year. Authorities are focusing on ensuring a sufficient supply as buyers shift to domestic coal, which is cheaper, over imported coal.

The first-half production in 2025 was 2.4 billion tonnes, and the production for June increased 3% over the previous year to 421 millions tons.

China is importing more than it produces, and this has caused a surplus.

In a report published on Monday, Kpler analysts stated that "currently the main factor shaping price sentiment" is domestic production.

The market is closely watching to see if mining regions reduce their output to relieve the current oversupply.

Early June saw a slight increase in domestic coal prices. This was due to the hotter weather that encourages air conditioners.

A government index revealed that the price of medium-grade coal with a 5,500-kilocalorie/kg rating rose from 618 Yuan ($86) per ton on 9 June to 630 Yuan on 14 July.

LSEG analysts wrote in a report last week that China's coal production could still experience a "modest decline" this year compared to a record-breaking year last year.

Forecasts can vary greatly.

An official from the China Coal Transportation and Distribution Association told the Coaltrans China Conference last month that the industry body expects the coal production to increase by 70 to 80 million tonnes this year due to the reduction in imports. (Reporting and editing by Clarence Fernandez; Colleen howe)

(source: Reuters)