China will continue to cut coal supply in 2017 as "demand keeps falling" and it hopes that the reduction will help stabilize prices, the China National Coal Association said yesterday.
China will trim 50 million tons of coal capacity in over 500 mines this year because "the supply-demand relation hasn't been balanced to ensure the long-term profit rebound" for the industry.
The association predicted coal use will continue a three-year slump, which would force companies to further cut production after coal consumption last year dropped 1.3 percent from that in 2015.
The further cut in coal supply will be a tool to prevent a slump in coal prices, the association said, adding that it has asked key players to "actively cut production" to keep stable prices.
Investment in coal fixed assets plunged 24.2 percent last year to 303.8 billion yuan ($44.1 billion).
