China’s listed coal companies are seeing a sharp decline in profits as falling coal prices and sluggish demand weigh on the sector.
Source: Futures Daily
China’s listed coal companies are seeing a sharp decline in profits as falling coal prices and sluggish demand weigh on the sector. According to 2024 annual reports and first-quarter results for 2025, 39 listed coal firms reported a combined profit of RMB 165.03 billion last year, with 32 remaining in the black. However, only seven posted year-on-year profit growth. In the first quarter of this year, total profits fell to RMB 33.65 billion, with just three companies recording growth.
The downturn reflects deepening pressure on both thermal and coking coal markets. Shanxi Zhongliu’s benchmark coking coal price fell 42% in 2024 and dropped another 25% in Q1 2025. Over the same periods, Qinhuangdao Port’s 5,500 kcal thermal coal declined 14.5% and 12.3%, respectively. That said, thermal coal producers were generally more resilient thanks to long-term supply contracts that shield them from short-term price swings—unlike coking coal firms, which are more exposed to spot market volatility.
“The coal sector saw a broad decline in net profits last year,” said Li Rong, a ferrous metals analyst at Wuchan Zhongda Futures. “Profits in coal mining and washing were down 22% year-on-year, driven mainly by falling prices.” From the start of 2024, thermal coal prices dropped 16.3%, while the main coking coal futures contract slumped 38.4%. That hit revenues directly and compressed margins across the industry.
The same pressures persisted in early 2025. By the end of March, spot thermal and coking coal prices had fallen a further 11.7% and 14.6%, respectively. At the same time, supply continued to grow: domestic coal output rose 8.1% year-on-year, while imports edged down 0.9%. On the demand side, thermal power output slipped 0.3%, and demand from key coal-consuming sectors like steel and construction remained weak. Inventories continued to rise, putting additional downward pressure on prices and profits.
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