Coal prices have surged, nearing $110 per ton and reaching their highest levels in six weeks, as recent reports indicate that China’s coal production hit an unprecedented record in 2025. This development reflects Beijing's ongoing emphasis on ensuring energy security even as the nation gradually transitions to cleaner energy sources. Coal output increased by 1.2%, totaling 4.83 billion tons, with coal remaining a crucial provider of over 50% of China's energy requirements.
In alignment with its strategy, China is on the verge of inaugurating over 100 new coal-fired power plants this year, primarily to bolster domestic electricity supply, with some capacity aimed at international markets. As the world’s leading consumer, producer, and importer of coal, China continues to depend significantly on coal to drive its economic engine, even while advancing its renewable energy sector. Nevertheless, Beijing has committed to reducing its coal consumption, aiming to initiate a decline before the year 2030.
