Insight
Four implications of China coal sector overcapacity
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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
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.
Table of contents
- Executive summary
- What led to the overcapacity in the coal sector?
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Four implications of overcapacity
- 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 the following images and tables:
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Ratio of coal production to approved capacity by province, %No of mines and average mine-size in ChinaNo. of mines and average mine-size in key provinces
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China productivity range by mining method and comparison with Australia (raw tpey)Domestic coal sector costs, revenue and cash flows, US$ billionA comparison of Chinese and Australian bituminous thermal coal prices delivered into Japan, US$/t
What's included
This report contains:
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