What’s driving the diverging coal supply trends in China’s key mining areas Ordos and Yulin?

Ordos in Inner Mongolia and Yulin in Shaanxi province are China’s two largest coal-producing prefectures. Together, they have contributed more than a quarter of China’s coal production in recent years. But in the first seven months of 2020, their supply trends have changed significantly: Ordos supply has fallen slightly while Yulin supply has greatly increased. This has led us to ask: • What is driving the divergent supply trends and will they last? • How have high delivery costs impacted transportation volumes from both regions and what does it mean for the market? To answer these questions, Wood Mackenzie visited a selection of mines, railway stations and coal traders in both areas at the end of August. Read our insight, to find out what we learnt.