Briefing on the Operation of Coal Economy in the First Half of Shandong Province

According to the National Development and Reform Commission, in June, the province produced 13.07 million tons of raw coal, a decrease of 0.2% from the previous month; and sales of commercial coal were 11.98 million tons, a decrease of 2.3%. In the first half of the year, a total of 76.67 million tons of raw coal were produced, an increase of 1% year-on-year; 72.27 million tons of commercial coal was sold, an increase of 0.3%. At the end of June, inventory of coal mines in the province totaled 2.44 million tons, an increase of 730,000 tons from the previous period, an increase of 68.7% year-on-year.

In the first half of the year, the production and sales of coal in Shandong Province grew steadily, the market supply and demand were slightly loose, inventory increased, and the price of commercial coal and major economic indicators declined.

First, weak balance of coal production and sales. In June, the province produced 13.07 million tons of raw coal, a decrease of 0.2% from the previous month, and sold 11.98 million tons of commercial coal, a decrease of 2.3%. In the first half of the year, a total of 76.67 million tons of raw coal were produced, an increase of 1% year-on-year; 72.27 million tons of commercial coal was sold, an increase of 0.3%. At the end of June, inventory of coal mines in the province totaled 2.44 million tons, an increase of 730,000 tons from the previous period, an increase of 68.7% year-on-year.

Second, the major economic indicators of commodity coal declined year-on-year. According to statistics from the Financial Express, in the first half of the province, the sales revenue of commodity coal in the province's coal enterprises was 48.46 billion yuan, a year-on-year decrease of 4%; profits and taxes were 32.54 billion yuan, a decrease of 5.3%; and profits were 15.96 billion yuan, a decrease of 17.9%.

Third, the average selling price of commercial coal declined, and accounts receivable increased. In June, the coal price of provincial coal enterprises was 609 yuan/ton, a decrease of 36.7 yuan/ton from the previous month. In the first half of the year, the average price of coal sold by provincial coal enterprises was 666.6 yuan per ton, a year-on-year decrease of 21.8 yuan per ton. Accounts receivable amounted to 10 billion yuan, a year-on-year increase of 83.7%.