China coal bodies propose curbs on output and imports

Two coal industry groups in China, the world's largest producer and consumer of the fuel, called on their members on Friday to curb output and limit imports to try to bring the oversupplied market back into balance.

The China Coal Industry Association and China Coal Transportation and Distribution Association spoke out in a joint statement after a major state-owned miner halted imports of coal.

The industry bodies said they were responding to lower-than-expected growth in coal demand from downstream companies and rising pressure from ample supply. The combination has cut domestic coal prices and eroded miners' profits.

Friday's statement represents a shift from the emphasis on energy security that began following power shortages in 2021 and 2022. That led to record high domestic coal production from 2021 to 2024, and a surge in coal plant approvals.

The two industry bodies urged coal companies to adjust production and to control the import and use of low-calorie and low-quality coal.

China's largest miner China Shenhua Energy has already halted spot imports of coal to protect its domestic market sales, according to sources speaking on condition of anonymity.

There has been no official announcement of the suspension that is only expected to affect about 1 million metric tons of coal per quarter, a tiny amount when compared with China's record 542.7 million tons of imports in 2024.

Next week's meeting of China's National People's Congress in Beijing may offer more clues to Beijing's energy policy direction for the year.