As more capacity returned to operation last week, China's daily coal output reached 11.93 million tonnes, a multi-year high, the state planner said, as Beijing attempts to overcome a supply shortage ahead of winter.
China's State Grid Corp warned of a "tight balance" between power supply and winter demand, despite the fact that an energy shortage has eased following measures to boost coal supplies and persuade large users to reduce their electrical consumption.
The National Development and Reform Commission (NDRC) said that average daily coal output for November 1-5 hit 11.66 million tonnes, up 1.2 million tonnes from end-September, with one day logging 11.93 million tonnes.
Stockpiles of coal have also increased. According to the NDRC, power plant stockpiles exceeded 117 million tonnes as of Saturday, while portside inventories increased by almost 1.5 million tonnes from a month ago to 5.39 million tonnes on November 7.
"Coal prices are projected to continue to decrease steadily as additional coal capacity is released and production continues to rise," the NDRC said.
As of 0215 GMT, the most-traded thermal coal futures contract on the Zhengzhou Commodity Exchange had dropped 3% to 920 yuan ($143.79) per tonne.
China's coal futures have dropped 52% since reaching an all-time high of 1,908 yuan per tonne on October 19.