China Met 29% of its Coal Capacity Reduction Target, Xinhua SaysBloomberg News
China cut 72.3 million tons of capacity in the first half
Nation’s full-year reduction target is 250 million tons
China’s effort to cut coal overcapacity in the first half of the year reached 29 percent of its full-year target, the official Xinhua news agency said.
The country reduced capacity by 72.3 million metric tons in the six months through June, compared with a full-year target of 250 million tons, Xinhua reported Tuesday, citing an industry meeting. The nation’s coal output dropped 9.7 percent to 1.6 billion tons in the first half, pushing up spot coal prices at the port of Qinhuangdao by 50 yuan a ton, or 13.5 percent, so far this year, it said.
The world’s largest energy consumer set up an asset-management company to push forward consolidation of coal resources held by state-owned enterprises. China’s attempts to cut overcapacity won’t subside despite prices having rebounded, Lian Weiliang, vice chairman with the National Development and Reform Commission, the country’s top economic planner, said in a separate Xinhua report on July 20.
“If China can strictly implement the capacity-cut policies it has introduced, the full-year target can be achieved,” Deng Shun, an analyst with ICIS China, said by phone. “While coal production continues to slide, benchmark Qinhuangdao prices will probably rise by another 80 yuan a ton by the end of this year.”
The provinces of Hunan and Jiangsu achieved their reduction targets by 82.9 percent and 78.2 percent, respectively. Beijing, Shaanxi and Xinjiang cut more than 50 percent of their overcapacity, while nine regions still haven’t started material work, Xinhua said.
Separately, China will strictly control coal consumption and reduce emissions from coal-fired plants, the NDRC said in a statement Tuesday.
— With assistance by Jing Yang