In the first half of 2025, Xuzhou, a key coal-producing region in Jiangsu Province, experienced a significant drop in coal prices. According to the Price Monitoring Center of the Xuzhou Municipal Price Bureau, the overall price level of coal and other bulk industrial products showed a marked decline during this period. In June alone, coal prices fell by more than 20% compared to the same month in the previous year.
Xuzhou is one of the major coal bases in Jiangsu, producing approximately 16 million tons of coal annually. The price of 5,000 kcal blended coal in the city was initially around 600 yuan per ton, but by the end of June, it had dropped to 500 yuan per ton. This represents a cumulative decrease of 16.67% over the first six months of the year, and a year-on-year decline of 23.08% in June.
The sharp fall in coal prices reflects broader market trends, including reduced demand from energy-intensive industries and increased supply from other regions. Analysts suggest that the downward pressure on coal prices may continue in the coming months as economic activity remains sluggish and renewable energy sources gain more traction. For local producers and traders, this situation presents both challenges and opportunities as they adjust to the evolving market dynamics.
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