• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 20 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days The United States produced more crude oil than any nation, at any time.
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 21 hours Bad news for e-cars keeps coming
  • 3 days China deletes leaked stats showing plunging birth rate for 2023
  • 4 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

The Entire Chinese Coal Industry is Bust

At least for the time being.

Platts reports data this week showing that the current Chinese price for thermal coal (as reflected in the FOB Qinhuangdao 5500 NAR marker) is below the cost of production for more than 90% of domestic miners.

That's a huge revelation for the global thermal coal market. No one in China is making money at current prices.

There hasn't yet been much word on coal mines closing in the country. But that would be the next logical step under current circumstances. The chart below (with data from China Data Online) shows that Chinese coal producer profits (black line) dropped dramatically in the first half of 2013.

Chinese Coal Producer Revenues
The data show that the drop in profits is partly a result of declining prices (red bars). But more due to a pervasive problem for the global mining sector: rising costs (blue bars).

It would appear that today's thermal coal prices are simply too low for the current economic environment. That should provide an upward push to pricing sooner or later.

Here's to drawing the line in the right place,

By. Dave Forest


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News