China’s coal consumption is set for its first annual decline this year since 2017 as the power industry throttled back on use of the fuel, an industry body said, though consumption could still grow moderately next year.
On its website, the China Coal Transportation and Distribution Association (CCTD) cited comments by a representative at a meeting on Wednesday, but did not give a specific figure for consumption.
“The industry faces a long road ahead in anti-involution,” the industry representative said, referring to a government campaign to tackle overcapacity among Chinese producers.
“Since the beginning of this year, 53.9% of industry firms have been operating at a loss, with minemouth prices falling by 16.8% year-on-year.”
Coal use also fell this year in the steel and building industries but was partially offset by growth in the chemical sector, the representative said.
Coal consumption in the power industry is seen growing steadily next year, while demand in the steel and building sectors will still fall, the group said, though rapid growth of demand in the coal chemicals industry is expected to continue.
The improving outlook comes amid better macroeconomic conditions, growing electricity demand and rising production of coal chemical projects.
China’s annual coal imports are projected to reach 480 million tons this year, CCTD said, down 11% from 2024, as demand has weakened while domestic supply swells.
(By Colleen Howe; Editing by Clarence Fernandez)
