China's coal output rises by 3.3% m-o-m in May

Daily coal production in May was estimated at 12.38 mnt, largely unchanged from the 12.39 mnt observed in April, according to Mysteel's calculation.

Last month, the country's thermal coal demand had showed signs of picking up compared to April, as higher temperatures-especially in South China-helped to boost power demand for household cooling.

However, total output still dropped slightly from the year-earlier level as local authorities were still conducting safety inspections on coal mines in key coal hubs in a bid to prevent more coal accidents, Mysteel Global learned.

Also in May, domestic steelmakers had enjoyed better margins when selling their steel, thanks to the recovery in finished steel prices, as reported. This stimulated their demand for coking coal to feed their blast furnaces and encouraged domestic coal miners to keep operations steady at that time.

Last month, coke production in China slipped by 1.5% on year but improved by 6.4% on month to about 40.96 mnt, according to the NBS data. However, the country's coke output for the first five months fell by 1.9% on year to total 199.47 mnt, the statistics showed.

Note: This article has been exchanged under the article exchange agreement between BigMint and Mysteel.