Insight
Four implications of China coal sector overcapacity
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
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 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
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