China mined 520 million mt of raw coal in January and February, up 5.7% year on year, National Bureau of Statistics data released Wednesday showed.
Demand for coal also picked up in the first two months of the year in the domestic as well as seaborne markets in light of better industrial performance.
China's power generation plants faced extreme low stockpile in January and the first half of February due to colder weather and better-than-expected recovery in business cycle.
To meet the stronger demand of coal, Chinese central government encouraged domestic coal producers to increase their production capacity and improve coordination with railways to streamline inland transportation and supply.
The price of FOB Qinhuangdao 5,500 kcal/kg NAR coal surged almost 30% in the past year, to be assessed at Yuan 770/mt early February, S&P Global Platts data showed, driven by strong demand and supply tightness in several coal-producing regions.
However, the prices fell after the Chinese Lunar New Year holidays due to low coal consumption rate and high stockpile level.
Platts assessed the FOB Qinhuangdao 5,500 kcal/kg NAR coal price at Yuan 645/mt FOB Tuesday.
China generated 1.045 trillion kWh of electricity in January-February, up 11% year on year and the highest rise since August 2013.
The growth rate of thermal power generation rose 9.8% year on year, while hydropower generation in the same period jumped 5.9% on the year.
Nuclear power generation was up 17.9% on the year, while wind and solar power generation grew 34.7% and 36%, respectively, on the year.
