Raw coal output in China hit an all-time monthly record in May after the country`s central government urged greater production to alleviate fears that shortages could lead to another round of brownouts this summer.
Production rose 6% from one month earlier and 18.5% year-on-year to 227Mt, the National Bureau of Statistics said.
Thermal coal shortages have emerged in some parts of the country, with coal stockpiles at key power plants in a number of provinces already falling below the state-set warning level of seven days.
Beijing has called on local governments to speed up approval process for small mines, whose output accounts for at least a third of the nation`s total, to return to operation.
Coke output in May grew 11% from a year earlier to 29.94Mt, statistics bureau figures showed. However, some analysts questioned the official output figures for coal and coke, saying actual growth was likely to have smaller.
"Output growth of coking coal would be probably 5% to 6%. It`s hard to imagine coke output would have grown 11% on the year. Where did the coking coal come from?" said an analyst at a large state-owned securities firm.
China`s May crude steel output also hit a monthly record in May reflecting high domestic and overseas demand. Crude steel output reached 46.01Mt tonnes, beating the March record of 44.87Mt and up 10.5% from a year earlier.
Analysts and traders have predicted that the output of the world`s largest steel making country would remain high in the second quarter, partly due to firms` running at a high operation rate before the Beijing Olympics in August, when mills could be forced to shut down.
Baosteel, China`s largest steel mill, said it had met 55% of its 2008 sales target for cold-rolled steel products so far in the first half, mirroring strong demand.
Source: Mining Journal
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