China’s Coal Output Posts Biggest Drop Since 2016

China’s coal production dropped 9.7% year-on-year to 381 million tonnes in June 2026, marking the steepest annual decline since 2016 and following a 1.7% fall in May. Average daily output fell to 12.7 million tonnes, the lowest since July 2025, after a deadly mine explosion in late May prompted widespread safety inspections across Shanxi, the country’s largest coal-producing province, disrupting mining activity. More than 300,000 tonnes of daily mining capacity were temporarily suspended following the accident, although capacity utilization has since partially recovered. In the first half of 2026, coal output declined 1.7% to 2.37 billion tonnes. Despite the recent weakness, production is still expected to edge up to a record 4.87 billion tonnes this year, supported by rising power demand and elevated imported coal prices, although stricter safety oversight is likely to limit further output growth.