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Production Starts at 58% of Chinese Coal Mines

Coal News - Published on Thu, 13 Feb 2020

Image Source: Coal Mining China
Worried about market tightness as downstream users return to work after an extended national holiday, Chinese coal traders and small coal-fired utilities are scrambling to lock in supplies of fuel from miners. Coal consumption is expected to pick up as work resumes at factories such as cement makers and chemical plants but the market worries increasing downstream demand will outstrip the pace of recovery in production by coal mines. Medium- and small-sized coal-fired utilities not bound by long-term contracts with coal mines are scrambling for spot market purchases, as concern grows about supply in coming weeks

Noble Group’s Rodrigo Echeverri said “In the short term, demand is poor but supply is worse. The shortage of thermal coal in China was likely to be very short-lived. We have seen a lot of demand for prompt shipments due in March, but not for April.”

A miner said “It takes time to restart production at coal mines, especially in the current situation. Officials’ priority was to make sure there was no virus outbreak at the mines. All workers coming back from their home towns will be put into quarantine for 14 days, with no exception.”

National Development and Reform Commission official told media that production has resumed at 57.8% of coal mines and authorities will work with regional officials to resolve problems from lack of workers to transport disruption, and try to get companies running as soon as possible

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Posted By : Yogender Pancholi on Thu, 13 Feb 2020
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