China Economy reported that 2014 was a bad year for China’s coal companies. China’s Coal Industry Association issued a release stating that, in the first 11 months of 2014, profits fell by 44.4 percent and losses increased by 61.6 percent when compared to same period in 2013; 70 percent of coal companies were in the red. China completed 3.52 billion tons of coal production, which was a 2.1 percent reduction from a year ago. It was the first decline since the year 2000. On the one hand, coal consumption continues to decline. On the other, the companies have excess capacity and operational difficulties. According to China Economy, this will be the new norm for the future of the coal industry.
Source: China Economy, February 21, 2015 http://www.ce.cn/cysc/ny/gdxw/201502/21/t20150221_4630603.shtml