A recent report from the Inner Mongolia Autonomous Region Coal Industry Bureau revealed that as of the end of June, 67 coal mines in the region had ceased operations, representing 20.2% of total coal mine production capacity. This significant shutdown highlights the ongoing challenges facing the local coal industry.
According to data released by the National Development and Reform Commission, coal production and sales across China saw a mixed performance between January and July. In Inner Mongolia, coal output reached 515 million tons in July, marking an 8.2% year-on-year decline. Meanwhile, sales dropped by 8%, reaching 530 million tons. These figures reflect a broader slowdown in demand and supply chain pressures.
In terms of pricing, the pit price for 5,500 kcal thermal coal in Inner Mongolia has fallen sharply this year. Starting at around RMB 405 per ton at the beginning of the year, the price dropped to RMB 310 per ton on September 9—representing a decrease of RMB 100 per ton over three quarters, or a 25% decline.
Analysts attribute this downward trend to several factors, including weak macroeconomic conditions, sluggish demand growth, overcapacity, high inventory levels, and continued competition from imported coal. These pressures have led to sustained price declines across the sector.
An internal report from Shenhua Group, obtained by the reporter, indicates that even with the current low prices, major coal producers like Shenhua, China Coal Pingyi, and Yitai are still able to maintain profitability, with margins of over 100 yuan per ton when the price of 5,500 kcal thermal coal reaches 570–580 yuan per ton. Large-scale mines in the Mengxi region also continue to operate with profit margins of 10 to 40 yuan per ton.
Despite the challenging environment, many large coal enterprises are increasing their production, hoping to "pay the price" and maintain market share. This strategy reflects the difficult balance between sustaining operations and managing declining revenues in a shrinking market.Komatsu Electrical Parts,Komatsu Forklift Parts,Excavator Electrical Parts,Quality Komatsu Electrical Parts
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