BUSINESS

China’s Coal Output Hits Record as Growth Slows Under Clampdown

Published: Jan. 20, 2026 6:02 a.m. GMT+8

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Large machinery stacks reserve thermal coal at a coal terminal storage yard in Lianyungang Port, Jiangsu province. Photo: VCG

China’s coal production rose to a record 4.83 billion tons in 2025, though the pace of expansion slowed considerably as regulators stepped in to rein in oversupply and stabilize tumbling prices.

The modest 1.2% annual increase marked a sharp pullback from years of robust growth driven by energy security goals. Authorities shifted gears in mid-2025, enforcing production quotas in response to market disruptions and price declines.

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China’s 2025 coal output hit a record 4.83 billion tons, rising just 1.2% as regulators enforced quotas mid-year to cut oversupply and stabilize prices.
Coal mining profits dropped 47.3% year-on-year to 6.63 trillion yuan ($945 billion), and average coal prices fell 19% from 2024 levels.
Power generation used 2.68 billion tons, about 80% of coal demand; construction materials and methanol sectors consumed 8.9% and 5%, respectively.

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Who’s Who

Fangzheng Securities: Fangzheng Securities, a Chinese financial services company, provided data indicating that coal mine shutdowns in the third quarter of 2025 impacted approximately 70 million tons of capacity. This information contributes to understanding the scale of the production cuts implemented by Chinese regulators to rein in oversupply in the coal market.

Mysteel: Mysteel, a consultancy, reported that electricity producers consumed 2.68 billion tons of thermal coal in 2025. This accounted for nearly 80% of total thermal coal usage. The construction materials sector used 300 million tons (8.9%), and methanol producers consumed 170 million tons (5%).

AI generated, for reference only

What Happened When

First half of 2025：: Coal production surged 5.4% year-on-year under relatively loose oversight. Mines found noncompliant in this period were ordered to halt operations for rectification.

Mid-2025：: Authorities shifted gears, enforcing production quotas in response to market disruptions and price declines.

July 2025：: The National Energy Administration (NEA) launched a nationwide compliance campaign and issued a directive urging a 'stable and orderly' coal supply.

After July 2025：: Output fell into contraction and remained negative through year-end 2025.

September 2025：: Officials in Inner Mongolia reported that 93 mines had overproduced and were suspended for rectification.

Third quarter of 2025：: Coal mine shutdowns affected about 70 million tons of capacity according to Fangzheng Securities.

First 11 months of 2025：: Coal mining and washing industry profits fell 47.3% year-on-year to 6.63 trillion yuan according to the National Bureau of Statistics.