This report discusses China’s coal industry, providing an overview of trends through H2 2013 and market outlook through 2015. The report also profiles leading players in the coal industry, among them China Shenhua Energy, China Coal Energy, Shanxi Coal International, Yang Quan Coal, and Yanzhou Coal Mining.

China has the world’s third-largest coal reserves after the United States and Russian Federation. In 2012, coal production in China grew by 3.8% year on year to 1,825.0Mtoe. China still accounted for nearly half of the world’s coal production and consumption. There were more than 7,900 companies in the coal industry recording a total of RMB 4.8tn in total industry asset value. The coal industry reported a lower net profit margin in 2013.

Coal accounted for nearly two thirds of the country’s energy production in 2012. China has committed to supercritical and ultra-supercritical pulverized coal combustion technologies in coal-fired power plants. The country had been a net exporter of coal for more than two decades. In 2012, coal imports surged 13.3% while exports decreased 19.3%.

China is expected to see slower growth in coal demand in the short-term, which is in line with the country’s economic growth. Railway freight traffic is projected to reach 2.6bn tons by 2015. In 2012, benchmark prices for Chinese coal dropped from RMB 800 per ton in January to RMB 635 per ton in October. Inventory at integrated dispatching power stations was at record levels by end-October. The leading players of the industry are China Shenhua Energy, China Coal Energy, Shanxi Coal International Energy Group, Yang Quan Coal Industry, and Yanzhou Coal Mining.

Key Points:

• This report offers details on market position and financial performance for six leading players in China’s coal sector, including the following: China Shenhua Energy Co. Ltd. (China Shenhua), China Coal Energy Co. Ltd., Shanxi Coal International Energy Group Co. Ltd. (SCIE), Yang Quan Coal Industry (Group) Co. Ltd. (Yang Quan), and Yanzhou Coal Mining Co. Ltd.

• In 2012, approximately 66% of China’s installed electricity capacity was coal-based. Coal-based electricity generation is expected to decrease from the current 66% to 55% by 2025.

• The government aims to reduce the number of coal companies to below 4,000 by 2015.

• From 2004 to 2013, coal imports recorded a CAGR of 37.52%. In 2013, imports of coal surged 13.3% year on year to 32.72mn tons.