FX.co ★ China's Coal Output Posts Biggest Drop Since 2016

China’s coal production fell 9.7% year-on-year to 381 million tonnes in June 2026, the sharpest annual decline since 2016 and a marked acceleration from the 1.7% drop recorded in May. Average daily output slipped to 12.7 million tonnes—the lowest level since July 2025—after a fatal mine explosion in late May triggered extensive safety inspections across Shanxi, the country’s largest coal-producing province, disrupting operations. More than 300,000 tonnes of daily mining capacity were temporarily taken offline in the wake of the accident, though capacity utilization has since partially recovered. Over the first half of 2026, total coal output was down 1.7% at 2.37 billion tonnes. Despite this recent softness, full-year production is still projected to edge up to a record 4.87 billion tonnes, underpinned by rising power demand and elevated seaborne coal prices, although tighter safety oversight is expected to constrain further output growth.