Data released today shows China’s coal production totaled 367.8 MMT in May.  This is up month-on-month by 5 MMT (1%) and is up year-on-year by 41.5 MMT (13%).  Coal-derived electricity generation totaled only 404.5 billion kilowatt hours.  This is up month-on-month by 3.7 billion kilowatt hours (1%) but is down year-on-year by 46.2 billion kilowatt hours (-10%). 

Growth in domestic coal production again exceeding growth in coal-derived electricity generation is not supportive for coal import prospects (coal-derived electricity generation has now contracted on a year-on-year basis for three straight months).  Coal-derived electricity generation is likely to eventually start growing again when coronavirus restrictions fully come to an end, but we expect coal production growth will continue to be stronger.