As we discussed in Commodore Research's most recent Weekly China Report, China’s coal output totaled 390.4 million tons in July. This is down month-on-month by 15 million tons (-4%) but up year-on-year by 12.9 million tons (3%). This is a strong level of production (the strongest ever for the month of July) and has marked a second straight month where China’s coal production has grown on a year-on-year basis. Prior to June, China’s coal output had contracted on a year-on-year basis for five straight months.
Coal-derived electricity generation totaled 574.9 billion kilowatt hours last month. While this has marked a month-on-month increase of 87.9 billion kilowatt hours (18%), it is down year-on-year by 24.8 billion kilowatt hours (-4%). Coal-derived electricity generation has now contracted for three straight months.
Hydropower production totaled 166.4 billion kilowatt hours. This is up month-on-month by 22.6 billion kilowatt hours (16%) and is up year-on-year by 45.3 billion kilowatt hours (37%). Hydropower production has increased on a year-on-year basis for twelve straight months. The strength in hydropower production has continued to put pressure on thermal coal-derived electricity generation.