China, the world’s largest coal producer, saw its coal output slip 0.8% year-on-year in May, according to data from the National Bureau of Statistics. The country produced 383.85 million tonnes of coal last month, down from 371.67 million tonnes in April, which was the lowest level since October 2022.
The decline in production was attributed to ongoing safety inspections and tightened safety standards in the industry, which led to some production pauses and weighed on overall output. On a daily basis, China’s coal production fell to 12.38 million tonnes per day in May, down from 12.39 million tonnes in the previous month.
For the first five months of the year, China’s coal production reached 1.86 billion tonnes, a 3% decrease compared to the same period in 2022. The subdued output was expected to continue during the first half of 2023, as strengthened safety standards in the key coal-producing region of Shanxi had resulted in a drop in production.
To compensate for the shortfall in domestic supply, China increased its coal imports by 11% year-on-year in May and by 12.6% during the first five months of the year. This suggests that the country is relying on overseas sources to meet its energy needs, as it navigates the challenges posed by the tightened safety regulations in the domestic coal industry.