CCTV News: Since the start of summer, persistent high temperatures in many parts of China have caused a steady rise in electricity demand, directly leading to an increased demand for upstream energy coal. Let’s take a look at the coal supply in Yulin, Shaanxi, a major coal-producing region in China.
At 6 p.m., at the gate of a coal mining company in Yulin, Shaanxi, hundreds of trucks lined up to load coal. Truck drivers reported that most of the coal was being transported to downstream coal washing plants or railway platforms, as well as some power plants and coal chemical companies in the province. Since late June, their business has noticeably improved.
A representative of this coal enterprise reported that they are currently shipping approximately 60,000 tons of coal daily via truck. Additionally, 17 to 18 dedicated coal trains are dispatched every day, carrying around 70,000 tons of coal. In the first half of this year, the company supplied 9.1 million tons of power coal, reflecting a year-on-year increase of regarding 5%.
Liang Xu, deputy general manager of Xiaobaodang Mining of Shaanxi Coal Group, stated that they anticipate extreme weather conditions this year, including more frequent high temperatures. He further predicted that downstream thermal power generation would likely rise, leading to increased demand for coal.
The weekly analysis of China’s thermal coal purchasing price index indicates that most parts of the country have experienced hot weather recently, leading to a rapid increase in cooling demand. From July 4 to July 12, the average daily power generation from coal-fired power plants included in power industry fuel statistics increased by 13.4% month-on-month, while the average daily thermal coal consumption rose by 12.3% month-on-month.
Qin Haixiao, a coal researcher at the Coal and Coke Division of Shanghai Steel Union, stated that major coal-producing regions are currently diligently fulfilling their long-term coal contracts. Given the significant increase in current renewable energy and hydropower generation, they anticipate overall coal supply and demand to remain relatively balanced in the future.
Coal enterprises accelerate the release of high-quality production capacity as the peak summer season enters a critical period
Thermal power generation remains the primary power source during the peak summer season, accounting for approximately 60% of total power generation. Ensuring the supply of power coal is therefore crucial. During the visit, the reporter learned that some coal companies are currently accelerating the release of production capacity.
At 10 a.m., Xu Yazhou, the team leader of the maintenance team at Yushuwan Mining of Shaanxi Yuneng Group, went underground to repair the coal mining machine on the 20115 fully mechanized mining face. He informed the reporters that they needed to complete the maintenance by 2 p.m. to restore the coal mining machine to normal operation as soon as possible.
Extending the production time by two hours can increase coal output by 2,800 tons per day. In addition to extending production time, coal enterprises are also improving production efficiency and releasing high-quality production capacity through intelligent transformation and optimization of production systems.
Recently, coal supply release has significantly accelerated. Data indicates that in June 2024, the output of raw coal in designated industrial enterprises reached 410 million tons, representing a year-on-year increase of 3.6%.
The daily coal transportation volume exceeds 1 million tons. The “West-to-East Coal Transportation” channel ensures the transportation capacity of power coal.
While coal enterprises are increasing production and supply, the railway department is also optimizing its transportation capacity to ensure the delivery of power coal. The Daqin Railway, China’s primary railway transportation channel for “transporting coal from west to east,” now handles over 1 million tons of coal daily.
In the driving room of Liucun South Station of Daqin Railway Section in Qinhuangdao, Hebei, staff are dispatching trains. The control console displays dense green and red lines indicating the occupancy of nearly 30 tracks within the station. Currently, approximately 90 trains on the Daqin Railway are heading towards Qinhuangdao, Tangshan, Caofeidian, and other ports.
The Daqin Railway, running from Datong, Shanxi in the west, to Qinhuangdao, Hebei in the east, is responsible for nearly one-fifth of the country’s total railway coal transportation. To ensure smooth power coal transportation, the Daqin Railway Department implements the principle of “unloading as much as possible, unloading quickly, and arranging quickly,” actively creating a “green coal transportation channel.” Since May of this year, the Daqin Railway has transported over 80 million tons of power coal.
Nationally, in June of this year, railway coal loading volume reached 84,000 cars per day, representing a 5.6% year-on-year increase. The average daily loading volume of thermal coal was 59,000 cars per day, marking a 2.9% year-on-year increase.
Coal Supply in China Amidst Summer Heatwave
CCTV News:Since the beginning of summer, the continued high temperatures in many parts of my country have led to a steady increase in electricity load, which has also directly led to an increase in demand for upstream energy coal. Let’s go to Yulin, Shaanxi, my country’s main coal producing area, to see the supply of coal.
At 6 p.m., at the gate of a coal mining company in Yulin, Shaanxi, hundreds of trucks were waiting in line to load coal. Truck drivers said that most of the coal was sent to downstream coal washing plants or railway platforms, as well as some power plants and coal chemical companies in the province. Since late June, their business has obviously improved.
The relevant person in charge of this coal enterprise introduced that the current amount of coal shipped by truck is regarding 60,000 tons per day. In addition, 17 or 18 special coal trains are shipped by train every day, with a coal volume of regarding 70,000 tons. In the first half of this year, the company’s power coal supply was 9.1 million tons, an increase of regarding 5% year-on-year.
Liang Xu, deputy general manager of Xiaobaodang Mining of Shaanxi Coal Group, said that extreme weather is expected to increase this year, high temperatures are likely to occur more frequently, downstream thermal power generation is likely to increase, and demand is likely to grow.
Coal Demand Soars Amidst Heatwave
The weekly analysis of China’s thermal coal purchasing price index shows that recently, most parts of the country have been hot and the cooling load has increased rapidly. From July 4 to July 12, the average daily power generation of coal-fired power plants included in the power industry fuel statistics increased by 13.4% month-on-month, and the average daily thermal coal consumption increased by 12.3% month-on-month.
Qin Haixiao, a coal researcher at the Coal and Coke Division of Shanghai Steel Union, said that currently the main coal producing areas are actively fulfilling their long-term coal contracts. Due to the large increase in current renewable energy and hydropower generation, the overall coal supply and demand is expected to be generally balanced in the later period.
Coal Enterprises Accelerate Production
As the main power source for the peak summer season, thermal power generation still accounts for regarding 60% of the total power generation, so it is particularly important to ensure the supply of power coal. The reporter learned from the visit that some coal companies are currently accelerating the release of production capacity.
At 10 a.m., Xu Yazhou, the team leader of the maintenance team of Yushuwan Mining of Shaanxi Yuneng Group, began to go underground to repair the coal mining machine of the 20115 fully mechanized mining face. He told reporters that he needed to complete the maintenance before 2 p.m. to restore the coal mining machine to normal operation as soon as possible.
Extending the production time by two hours can increase the coal output by 2,800 tons per day. In addition, coal enterprises also improve production efficiency and release high-quality production capacity through intelligent transformation and optimization of production systems.
Recently, the release of coal supply has accelerated significantly. Data shows that in June 2024, the output of raw coal in industrial enterprises above designated size was 410 million tons, a year-on-year increase of 3.6%.
Ensuring Coal Transportation
While coal enterprises are increasing production and supply, the railway department is also optimizing its transportation capacity to ensure the transportation of power coal. The Daqin Railway, the main railway transportation channel for “transporting coal from west to east” in my country, now transports more than 1 million tons of coal per day.
In the driving room of Liucun South Station of Daqin Railway Section in Qinhuangdao, Hebei, staff are dispatching trains. On the control console, dense green and red lines show the occupancy of nearly 30 tracks in the station. Currently, there are nearly 90 trains on the Daqin Railway heading to Qinhuangdao, Tangshan, Caofeidian and other ports.
It is understood that the current daily coal transportation volume of the Daqin Railway has reached more than 1 million tons, an average daily increase of 12,000 tons compared with last month. The Daqin Railway runs from Datong, Shanxi in the west to Qinhuangdao, Hebei in the east, and undertakes nearly one-fifth of the total railway coal transportation in the country. In order to ensure the smooth transportation of power coal, the Daqin Railway Department adopts the principle of “unloading as much as possible, unloading quickly and arranging quickly”, and actively opens up a “green coal transportation channel”. Since May this year, the Daqin Railway has transported more than 80 million tons of power coal.
In June this year, the national railway coal loading volume was 84,000 cars per day, a year-on-year increase of 5.6%; the average daily loading volume of thermal coal was 59,000 cars per day, a year-on-year increase of 2.9%.
