China's fossil fuel output dips from March highs but rises year-on-year

Chinese fossil fuels output fell in April from the record levels hit in the prior month, although natural gas, crude oil and coal all delivered increases compared to the previous year as the government continues to prioritize security of supply despite weaker prices. 

Gas output rose 8.1 per cent year-on-year to 21.5 billion cubic meters, while crude oil increased 1.5 per cent to 17.7 million tonnes, the statistics bureau said on Monday. Coal production rose 3.8 per cent to 389 million tonnes, although that was 51 million tonnes less than March, offering a hint of relief for miners suffering from a slump in prices to four-year lows. 

 

Elsewhere in the energy sector, crude oil processing fell 1.4 per cent as refining units were closed for seasonal maintenance.

 

Maintenance also affected crude steel output, which flattened in April. Outright cuts to production are likely in the coming months as mills follow through on the government’s pledge to ease China’s glut.  

 

But aluminum output rose 4.2 per cent — and hit a record on a daily basis — as smelters took advantage of falling feedstock costs.

On the Wire

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