MYSTEEL: Impact of overmining crackdown on China's coking coal supply limited so far

China's National Energy Administration has reportedly planned to investigate coal mine production situations in eight major coal-mining regions including North China's Shanxi province by August 15, aiming to regulate production beyond mines' licensed capacities and address the current grave supply-demand imbalance of the domestic coal market, according to several official notices seen by Mysteel Global.

The focus of the investigation is whether miners' coal output exceeded their approved capacity by 10% in the first half of 2025. Any mine found in violation will face immediate suspension for rectification, as reported. This policy quickly ignited expectations that domestic coal supply may experience a clear contraction soon,