Coal production at Chinese top coal mining provinces increased on an annual basis but this is mostly due to the fact that mining restrictions forcing producers to limit working days to 276 per year introduced in April 2016, have since been lifted. Chinese coal miners are now allowed to produce coal during 330 days a year, which explains the rise in domestic coal production.
Coal output at Shanxi increased to the highest level since December, at 75.3m tonnes, up 0.4% m-o-m and up 14.6% y-o-y. Inner Mongolian production totalled 73.5m tonnes, down 7.5% m-o-m but still was higher 10.5% y-o-y. Shaanxi produced 49.4m tonnes, up 0.2% m-o-m and up 21.8% y-o-y. Coal output at Shandong totalled 11m tonnes, down 1.7% m-o-m but still was 15.1% higher y-o-y. Coal miners in Shandong were struggling with poor weather conditions in July, which hampered coal output.
Inner Mongolian output increased to 553.2m tonnes, up 84m tonnes or 18.7% y-o-y. Shanxi produced 491.7m tonnes over the first 7 months of the year, up 32.1m tonnes or 7% y-o-y. Shaanxi produced 294.8m tonnes, up 54.8m tonnes or 22.85 y-o-y. The only exception is Shandong province where coal output declined to 72.6m tonnes over the Jan.-July period, down 4m tonnes or 5.2% y-o-y. This is due to heavy capacity reductions introduced by the central government as part of the 13th Five Year Plan.