Sxcoal Issue #7 | China's coal and coke production capacities
This would be the last issue before the Chinese New Year. We wish you happiness and good luck in the year of the Rabbit. In this issue, we'd focus on China's coal and coke production capacities.
Slowing coal capacity growth
China's expansion of coal production capacity is forecast to slow down in the next five years after reaching peaks in 2021-22, but we may still see moderately high increase this year, according to the latest research report released by consultant Fenwei.
Over 2023-2027, the country's new coal production capacity is projected to reach 503.18 Mtpa, with thermal and coking coal at 415.35 Mtpa or 82.5% of total, and 87.83 Mtpa or 17.5%.
The world's largest coal producer and consumer added a total 301.06 Mtpa of coal production capacity last year, in an effort to boost domestic supply amid a more volatile global market. » More details
This helped bolster China’s total coal output to approx. 4.5 Bt in 2022, up 9.0% YoY, and a record high Dec output of 402.7 Mt. We expect continued growth of production in 2023, but the rate of increase could ease, given the decline in capacity addition as well as uncertainties in policies, prices among others. » More details
Coke capacity rise hits profitability
China’s coke producers gradually lost pricing power in the tug of war with steel mills, as coke production increased with the operation of more new capacities in 2022. This was in sharp contrast with strong prices in 2021, when domestic supply dropped under intensive capacity elimination started from 2020.
Fenwei's latest report shows that in 2022, China added 52.57 Mtpa of new coke production capacity and eliminated 26 Mtpa, a net increase of 26.56 Mtpa. By end-2022, the country had a total 557.35 Mtpa of coke capacity in operation.
Fenwei expects China's coke production capacity to continue to grow in 2023, anticipating new capacity at 60.3 Mtpa and to-be-eliminated capacity at 46.08 Mtpa, indicating a net increase of 14.22 Mpta. » More details
More updates
Sxcoal has summaried the latest official coal import/export updates as follows:
Chinese mainland - Dec 2022
Chinese Taiwan - Dec 2022
South Korea - Dec 2022
Indonesia - Nov 2022
South Africa - Nov 2022
Japan - Nov 2022
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