China’s Record Coal Output to Weigh on Prices Amid Weak Demand

(Bloomberg) — China’s coal production is set to climb for the sixth year in a row, reaching a new record, as the Beijing government acts to ensure supplies in the top miner and consumer of the fuel, spurring further declines in prices.

Output could reach 4.4 billion tons in 2022, driven by faster capacity expansions at major mines, the official China Energy News said Wednesday. While Covid flare-ups have constrained mining, government efforts to guarantee winter supplies may lift output back to a daily record in the final two months of the year, boosting annual production by 8% from 2021.