中文
The capacity utilization rate of China's coal mining and washing industry was 73.8% during the third quarter, a decrease of 1.2 percentage points from a year earlier, and a 0.7 pp of fall from the previous quarter, according to data released by the National Bureau of Statistics.
Since the fourth quarter of 2019, the coal industry capacity utilization in China reached a second-highest level in the fourth quarter of 2021 after nearly two years of growth, data showed. However, it has been fluctuating with an overall downward trajectory since then.
This decline in capacity utilization rate in coal industry possibly could be ascribed to a significant growth slowdown of China's raw coal production, and production cut and suspension at some mines for strict safety checks.
Moreover, most of the newly approved coal mines in recent years are large-scale ones, which have a longer construction period. It is difficult for them to reach full production capacity in a short period even after starting operation, limiting the overall capacity utilization rate.
However, considering current high raw coal production, the capacity utilization rate remained relatively high at above 73% in the third quarter despite the downtrend over the past two years.
The high level of capacity utilization rate usually occurs in the fourth quarter of each year. Looking ahead, the coal industry capacity utilization is expected to increase as coal mining production will shift back to prioritizing production ramp-up to ensure supply and safety inspections will further normalize with the approaching peak winter electricity demand.
During July-September, power industry capacity utilization stood at 74.2%, up 1.5 pps on the year and 2.8 pps on the quarter.
The continuous increase in power generation, baked by the continuous improvement of the macroeconomy and electricity consumption growth, bolstered the capacity utilization rate in the power industry. However, the skyrocketing installed renewable capacity and its unstable output in recent years have dragged noticeably on the overall power industry capacity utilization.
Similar to the coal industry, the fourth quarter of each year is usually the period with the highest capacity utilization in the power industry. Starting from November, as temperatures drop, residential electricity consumption for heating will increase, driving the growth of power generation and thereby lifting the capacity utilization rate in the power industry.
The overall industrial capacity utilization was registered at 75.6%, flat compared to the year-ago level and up 1.1 pps from the second quarter of this year, NBS data showed.
In the industrial sector as a whole, the capacity utilization rate has decreased in many industries and increased in a few, indicating that the Chinese economy remains in the recovery phase.
(Writing by Riley Liang Editing by Emma Yang)
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