China  mined  520  million  mt  of  raw coal in January and February, up 5.7% year on year, 

National Bureau of Statistics data released Wednesday showed. 

Demand for coal also picked up in the first two months of the year in the domestic as well as 

seaborne markets in light of better industrial performance. 

China's power generation plants faced extreme low stockpile in January and the first half of 

February due to colder weather and better-than-expected recovery in business cycle. 

To meet the stronger demand of coal, Chinese central government encouraged domestic co

al producers to increase their production capacity and improve coordination with railways to 

streamline inland transportation and supply. 

The price of FOB Qinhuangdao 5,500 kcal/kg NAR coal surged almost 30% in the past year, 

to  be  assessed  at  Yuan 770/mt early February, S&P Global Platts data showed, driven by 

strong demand and supply tightness in several coal-producing regions. 

However,  the  prices  fell  after  the  Chinese  Lunar  New  Year  holidays  due  to  low  coal 

consumption rate and high stockpile level. 

Platts assessed the FOB Qinhuangdao 5,500 kcal/kg NAR coal price at Yuan 645/mt FOB 

Tuesday. 

China generated 1.045 trillion kWh of electricity in January-February, up 11% year on year 

and the highest rise since August 2013. 

The  growth  rate  of  thermal power generation rose 9.8% year on year, while hydropower 

generation in the same period jumped 5.9% on the year. 

Nuclear power generation was up 17.9% on the year, while wind and solar power generation 

grew 34.7% and 36%, respectively, on the year.