China says meets 29 percent of 2016 coal capacity cut target in first six months

China’s local governments and state-owned firms have met 29 percent of the 2016 coal overcapacity reduction target in the first six months, with some regions still yet to take concrete action, the official Xinhua news agency said.

Seventeen provincial-level governments and some of the country’s largest state-owned companies have jointly cut 72.27 million tons in coal production capacity, about 29 percent of the 250-million-ton coal reduction target for the year, according to the National Development and Reform Commission.

According to Xinhua, Hunan and Jiangsu provinces completed 82.9 and 78.2 percent of their cuts in the first six months, while Beijing, Shanxi Province and northwestern Xinjiang were halfway through. Nine other unnamed provinces have yet to cut their coal production overcapacity.

China has embarked on a mission to cut coal capacity as part of its supply-side structural reform.

Coal production declined 9.7 percent during the first six months of the year to 1.63 billion tons. Inventories went down 8.6 percent in the same period, Xinhua said, adding that coal prices had recovered with coal shipped to Qinhuangdao rising 50 yuan (US$7.50) to 420 yuan per ton on July 20.

 

 

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