*
Daily coal output at 13.46 mln T in March vs 12.44 mln T
Jan-Feb
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Daqin railway began 30-day maintenance period on April 6
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Port inventory still higher than previous years
(Adds background on coal stocks, bullets)
By Muyu Xu
SINGAPORE, April 18 (Reuters) - China's coal production
hit a record high in March, official data showed, as consumers
dashed to replenish stocks before a major coal transporting
railway partially shut for maintenance.
Miners churned out 417.22 million tonnes of coal last month,
data from the National Bureau of Statistics showed on Tuesday.
That was equivalent to 13.46 million tonnes per day, an all-time
high, Reuters calculations show.
The daily output was higher than the 12.44 million tonnes
per day produced in the January-February period, despite safety
inspections at mines following a fatal accident in late
February, and was up 4.3% compared with March 2022.
Output in the first quarter of 2023 was 1.15 billion tonnes,
up 5.5% on year, data showed.
Miners ramped up operations amid rising demand from users,
such as cement and chemical producers, as China's economic
activity resumed after it abandoned its zero-COVID policy.
Some utilities in coastal regions also rushed to get stocks
before Daqin railway partially shut for spring maintenance.
Daqin railway connects the coal mining hub of Shanxi and the
key coal port of Qinhuangdao. The railway kicked off a 30-day
maintenance overhaul on April 6 that is expected to reduce daily
cargo transport by more than 10%.
However, rising inventories at ports and utilities will cap
coal production in the short term, analysts and traders said.
Coal stocks at four major northern ports were at 14.61
million tonnes as of Friday, down from 14.94 million tonnes at
end-March due to the Daqin railway maintenance, but still
significantly higher than the same period in the prior two
years, data compiled by provider Wind showed.
Reserves at eight coastal utilities reached about 31.4
million tonnes last week, sufficient for 18 days of use, Wind
data showed, giving fewer incentives for power plants to step up
procurement.
Meanwhile, China's mining safety watchdog said in March that
it would extend inspections to the end of 2023, targeting all
coal mines in the country. The move is expected to crack down on
illegal overproduction, putting a lid on output.
(Reporting by Muyu Xu; Editing by Himani Sarkar)
