China Coal Energy, a subsidiary of state-owned producer China Coal, said that domestic coal prices had just a little room to drop sharply in the near term. The company noted that prices might retreat slightly on lower electricity use toward the end of summer and higher coal production. However, unusually low coal inventories, winter restocking, and strict mine safety inspections are likely to prevent prices from declining further.
China Coal Energy has applied for capacity expansion at some of its mines. However, the additional supply, if approved, is unlikely to come this year as the company needs time to actually increase its production. China Coal Energy said it would stick with its existing production target of 105 million tons in 2021.
