Insight

Four implications of China coal sector overcapacity

This report is currently unavailable

This report is currently unavailable

Get this Insight as part of a subscription

Enquire about subscriptions

Already have a subscription? Sign In

Further information

Pay by Invoice or Credit Card FAQs

Contact us

Submit your details to receive further information about this report.

For details on how your data is used and stored, see our Privacy Notice.
 

Report summary

Several sectors of Chinese industry are facing overcapacity issues. The government recently announced a plan to tackle overcapacity in the domestic coal sector. The Insight discusses implications of the government action on coal markets.  

What's included

This report contains

  • Document

    Four implications of China coal sector overcapacity

    PDF 357.14 KB

Table of contents

  • Executive summary
  • What led to the overcapacity in the coal sector?
    • Mine closures: rapid elimination of excess capacity to result in large lay-offs
    • Industry restructuring: larger companies to acquire smaller mines to accelerate consolidation
    • Backward integration: encourage large consumers in the power, steel and chemicals space to acquire coal mines to secure long-term supplies
    • Domestic protectionism: export duty removal and VAT rebate allowance to increase exports
  • Conclusion

Tables and charts

This report includes 6 images and tables including:

Images

  • Ratio of coal production to approved capacity by province, %
  • No of mines and average mine-size in China
  • No. of mines and average mine-size in key provinces
  • China productivity range by mining method and comparison with Australia (raw tpey)
  • Domestic coal sector costs, revenue and cash flows, US$ billion
  • A comparison of Chinese and Australian bituminous thermal coal prices delivered into Japan, US$/t

Questions about this report?

  • Europe:
    +44 131 243 4400
  • Americas:
    +1 713 470 1600
  • Asia Pacific:
    +65 6518 0800