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7 Pages

Chinese coal giants unlikely to take full action in production cuts


Chinese coal giants unlikely to take full action in production cuts

Report summary

China's major coal producers are not likely to fully implement production cuts as requested by the government. If the cuts were fully implemented, it is likely coal imports, particularly from Indonesia, would be the main beneficiaries. China's domestic producers have competed fiercely to capture market share from imports this year and we do not expect the market share to be given away.

What's included?

This report includes 2 file(s)

  • Chinese coal giants unlikely to take full action in production cuts PDF - 350.05 KB 7 Pages, 1 Tables, 8 Figures
  • Chinese coal giants unlikely to take full action in production cuts.xls XLS - 502.50 KB

Description

This Coal Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

Participants, suppliers and advisors can use it to look at the trends, risks and issues within the coal industry and gain an alternative point of view when making decisions.

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  • Executive Summary
  • A push for production cuts at the largest coal producers
    • Production cut target by key state owned coal in 2014
    • Daily burn in key power plants
  • Coal inventories unable to make up the supply reduction for production cuts
    • Qinhuangdao coal price (5500 kcal/kg NAR) vs. coal inventories
  • Non-KSOE mines are financially incapable to increase production
    • KSOE Production in Inner Mongolia peaks in Q4
    • Impact of weak pricing on China domestic coal miners
  • Indonesian imports would nullify the effect of production cuts – not an option for China KSOEs
  • KSOE producers are unlikely to fully enforce the production cuts
    • Historical raw coal production of China Coal Energy

In this report there are 9 tables or charts, including:

  • Executive Summary
  • A push for production cuts at the largest coal producers
    • Chinese coal giants unlikely to take full action in production cuts: Table 1
    • Chinese coal giants unlikely to take full action in production cuts: Image 1
  • Coal inventories unable to make up the supply reduction for production cuts
    • Chinese coal giants unlikely to take full action in production cuts: Image 2
    • Inventory at major ports drops in Q4
    • Chinese coal giants unlikely to take full action in production cuts: Image 4
  • Non-KSOE mines are financially incapable to increase production
    • Chinese coal giants unlikely to take full action in production cuts: Image 5
    • Chinese coal giants unlikely to take full action in production cuts: Image 6
  • Indonesian imports would nullify the effect of production cuts – not an option for China KSOEs
  • KSOE producers are unlikely to fully enforce the production cuts
    • Historical commercial coal production of China Shenhua
    • Chinese coal giants unlikely to take full action in production cuts: Image 8
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