China's coal production in October rose 4.6% on an annual basis

China's coal production rose by 4.6% from a month earlier in October, according to data released on Friday. The increase was due to the recovery of production from safety-related restrictions a year before.

National Bureau of Statistics data showed that the world's biggest coal producer, China, mined 411.8 millions metric tons of coal last month.

This was because the safety inspections that took place in September and Octobre 2023, which limited production, had a low baseline.

The production in October was slightly lower than the 16-month record of 414.46 millions tons reached in September.

The production in October represents an average daily output of approximately 13.28 million tonnes, compared to 13.82 million in Septembre and 12.79 in August.

Early in November, the regulator of state-owned assets urged state companies to increase production to meet winter heating demand, which raised analyst expectations that further production increases would be seen in November and December.

Cement firms in northern Shandong where the industrial sector is heavily dependent on captive coal-fired plants will have to reduce production from November 15 to March 15. This could impact non-power demand.

The Bureau of Statistics reported that China produced 3,89 billion tons in the first ten months of this year. This is an increase of 1.2% over the same period of 2023. (Reporting and editing by Clarence Fernandez; Colleen howe)

(source: Reuters)