Divergence in China's Coal Output and Coal-Derived Electricity Generation Continues

By Jeffrey Landsberg

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.