Yanzhou expects coal oversupply to persist worldwide, but rising demand from some emerging nations will help stabilise prices in the second half. Photo: Reuters
Yanzhou Coal Mining, China's fourth largest coal miner, plunged into the red in the first half of the year, as its methods to counteract a fall in coal prices and demand failed. The company downsized staff and cut materials consumption in a bid to reduce its production cost per tonne by 24-28% YoY at its domestic mines, and by around 15% at its overseas mines. Although the company is expecting coal oversupply to remain worldwide, an increasing demand from India will help stabilise prices towards the end of the year.