Nearly half of 324 coal firms in Inner Mongolia have suspended production, according to Inner Mongolia Coal Industry Bureau.
Production suspension by coal firms was mainly attributed to slowdown of coal demand growth, squeeze-out by import coal, and excessive domestic coal production capacity, said Guo Yinquan, deputy head of Inner Mongolia Coal Industry Bureau.
In January-May, coal sales in Erdos, the provincial capital of Inner Mongolia declined 4.7 percent on year to 198.37 million tonnes. Coal sales in Erdos in May plunged 15 percent on year to 38.1 million tonnes. Though large coal producers in China have hiked their coal prices, downstream demand for coal stock replenishment remains sluggish, and therefore profit of coal firms are unlikely to be raised.
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