NEA launches overproduction inspections, reining in supply and lifting prices
In July, China's top energy regulator - the National Energy Administration - rolled out a nationwide campaign targeting coal mines that had been producing beyond their approved capacity. Under the new rules, any mine whose monthly output in the first half of 2025 exceeded licensed capacity by more than 10 per cent faced immediate suspension.
The inspections quickly altered market dynamics. An oversupply situation that had weighed on prices for more than a month began to ease, helping trigger a price rally in the third quarter.
Notably, the impact was immediately visible in financial markets, with China's coking coal futures surging 25 per cent in July 17-25, breaking above the psychologically important RMB 1,000 per tonne (USD143.1 per tonne) level.
The move was widely seen as part of a broader push to curb "involution" across multiple industries - reducing cut-throat competition and restoring profitability. Market participants expect the campaign to extend well into 2026.

Explore- Most accurate data to drive business decisions with 50+ reports across the value chain

NDRC tightens clean and efficient coal-use standards for 2026
On December 17, the National Development and Reform Commission (NDRC) released the 2025 edition of benchmark and baseline standards for clean and efficient coal use, replacing the 2022 framework. The update is intended to accelerate coal's transformation from a basic fuel into a source of higher-value products.
The new standards raise the bar for energy efficiency and emissions for coal-fired power generation, industrial boilers, and coal-to-chemicals processing. Utilities and industrial users will be required either to upgrade facilities or phase out outdated capacity.
Market participants said the tighter requirements could redirect higher-quality coal into value-added sectors, particularly coal-to-chemicals, raising concerns over the supply tightness of premium coal for power generation and steelmaking, sources noted.

Coal output hits new highs, while consumption posts its first decline in 9 years
China's coal production is once again on track to set a new record in 2025. Raw coal output reached 4.4 billion tonnes in the first 11 months, up 1.4 per cent on year, the National Bureau of Statistics showed.
At the same time, thermal power generation - still dominated by coal recorded a 0.7 per cent year-on-year decline over the same period, putting the sector on course for its first annual drop since 2015. The combination of rising output and softening consumption kept supply-demand fundamentals loose for most of the year, leaving coal prices generally weaker than in 2024, Mysteel Global noted.

Read More: WEEKLY: China's coking coal output declines amid mine halts

Coal imports set to fall below 2024 levels
China's 2025 coal imports are almost certain to decline compared with the 2024 level. Abundant domestic supply, along with more efficient inventory management by utilities, capped import demand throughout the year.
From January to November, total coal imports stood at 431 68 million tonnes, down 12 per cent year on year. The decline underscored China's reduced reliance on overseas coal amid ample domestic availability.
China Shenhua's landmark USD19 billion acquisition reshapes the sector
On December 19, China Shenhua Energy announced a landmark acquisition of 12 core assets from its parent, China Energy Investment Corporation, for RMB 133.6 billion (USD19 billion).
The deal spans coal, power, chemicals, shipping, trading, and port operations. Once completed, Shenhua's coal resource holdings will jump to 68.49 billion tonnes, up 64.7 per cent, while recoverable reserves will nearly double to 34.5 billion tonnes. Based on 2024 performance, coal output would rise 56.6 per cent to 512 million tonnes.
The transaction aims to eliminate long-standing horizontal competition within the group and create a fully integrated industrial chain linking coal, power generation, transportation, and downstream processing.
Long-term thermal coal contracts for 2026 exceed 1.2 billion tonnes
Domestic thermal coal supply in China under medium- and long-term contracts - signed among coal producers, transporters, and end users for 2026 has exceeded 1.2 billion tonnes, according to the National Coal Trading Centre.
The process has now moved into the transport capacity allocation phase, laying the groundwork for supply stability next year. The NDRC left most contract rules unchanged, including pricing formulas and the share of contracted volumes in total output.

Intelligent coal mining accelerates nationwide
Coal mine intelligence continued to gain momentum in 2025. By the end of June, intelligent coal mines accounted for more than 55 per cent of China's total mining capacity, industry newspaper China Coal News reported.
These mines deploy technologies such as AI, big data, IoT, and 5G to automate and remotely control key processes, including extraction, tunnelling, and safety monitoring. The push aims to improve safety, raise efficiency, and support long-term sustainability across the sector.

Xinjiang's outbound power transmission surpasses 1 trillion kWh
By December 15, Xinjiang's cumulative outbound power transmission exceeded 1 trillion kWh for the first time, reaching 1,000.5 billion kWh, local grid operators said. Renewables accounted for 296 billion kWh - nearly one-third of the total.
Xinjiang has become a cornerstone of China's energy system, converting its abundant coal, wind, and solar resources into electricity for nationwide consumption. With five major transmission lines totalling 33 million kW of capacity, the region now supplies power to 22 provinces.
Since outbound transmission began in 2010, annual volumes have surged from 300 million kWh to 126.7 billion kWh, remaining above 100 billion kWh for five consecutive years.
China keeps a 28 per cent tariff on U.S. coking coal imports
Despite a brief trade truce in early November, China ultimately retained a 28 per cent tariff on U.S. coking coal imports. The rate includes a 3 per cent most-favoured-nation tariff, a 15 per cent levy imposed in February, and a 10 per cent surcharge applied to all U.S. goods.
Market participants believe that the current tariff has effectively ruled out any near-term recovery in U.S. coal exports to China. This view is corroborated by the latest Chinese Customs data, which recorded imports of U.S. coal at a mere 22 tonnes in November. Monthly levels have remained near zero since May.
As these news items show, coal's role in China is steadily evolving from a foundational energy source to a backup for renewables and a feedstock for higher value-added applications. As renewable capacity continues to expand, coal supply - especially of coal of inferior quality is likely to remain structurally ample next year, while the supply of high-quality coal seems destined to be in shortage next year, Mysteel Global observes.

Don't miss out- Buyers are looking for your products on our B2B platform

Note: This news is published under a content and exchange agreement with Mysteel