Strict Investigation of Coal Mine Overproduction and Rectification of Involution Storm! Can cement industry be far behind?

2025-07-24 09:51:50

From this point of view, similar to the coal industry, the cement industry also urgently needs to carry out comprehensive production verification work, through strengthening supervision and standardizing production order, so as to promote the smooth and orderly development of cement market supply.

On July 10, the General Department of the State Energy Administration issued the Notice on Organizing the Verification of Coal Mine Production and Promoting the Smooth and Orderly Supply of Coal. The notice pointed out that since 2024, the overall supply and demand of coal in China has been loose, and the price has continued to decline. Some coal mining enterprises have adopted the strategy of "making up the price by quantity" to organize production beyond the announced capacity, which has seriously disrupted the order of the coal market. In order to implement the decision-making and deployment of the CPC Central Committee and the State Council, strengthen the regulation and control of the coal market, further strengthen the management of production capacity, standardize the production behavior of coal mines, and promote the stability of coal supply, the National Energy Administration will organize the verification of coal mine production in key coal-producing provinces (regions).

The verification covers coal mines in eight provinces (regions) including Shanxi, Inner Mongolia, Anhui, Henan, Guizhou, Shaanxi, Ningxia and Xinjiang, and the coal mines that have entered the joint trial operation are verified according to the production coal mine standards. The main contents of the verification include:

verifying whether the annual raw coal output of the coal mine in 2024 exceeds the announced production capacity (the joint trial operation of the coal mine is subject to the announced construction scale), and whether the monthly raw coal output from January to June 2025 exceeds 10% of the announced production capacity;

Check whether the production plan and relevant economic indicators exceeding the announced production capacity are issued to the subordinate coal mines when the enterprise group company prepares the 2025 production plan;

evaluate whether the coal mines are unbalanced or unreasonable when arranging the 2025 quarterly and monthly production plans.

For coal mines and enterprises that violate the regulations, they will be dealt with seriously:

for enterprise group companies that violate the regulations and issue production plans and economic indicators exceeding the announced production capacity, or for unreasonable arrangements of coal mine production plans, they will be ordered to correct immediately, and they will be required to arrange production scientifically and rationally according to regulations, and continue to standardize management;

For coal mines with over-announced production capacity in 2024, but which have been corrected in time in 2025 and have not overproduced again, they are required to make a profound review, issue a written commitment to produce in accordance with the law and regulations, and strengthen supervision; In accordance with the relevant provisions of the Opinions of the State Council on Resolving Excess Capacity in the Coal Industry to Achieve Difficulty Relief and Development (Guofa [2016] No.7), all coal mines whose raw coal output exceeds 10% of the announced capacity in any month from January to June

2025 shall be ordered to stop production and rectify, and shall be punished in accordance with the law and regulations, and shall be notified within the province (region). After completing the rectification of production plan adjustment, mining layout and personnel arrangement, the

suspended coal mines must strictly implement the resumption procedures before resuming production.

At present, the problem of overcapacity in the cement industry has become increasingly prominent, and the phenomenon of overproduction has been criticized for its interference and destruction to the healthy operation of the industry. According to the actual situation in the industry, the average overproduction of cement clinker production lines by 30% has become a common phenomenon, and the overproduction capacity of some large-scale production lines is even more prominent. The existence of this disorderly overproduction has seriously weakened the implementation effect of the policy of peak staggering production, making it difficult for the industry to effectively implement its regulatory objectives. From this point of view, similar to the coal industry, the cement industry also urgently needs to carry out comprehensive production verification work, through strengthening supervision and standardizing production order, so as to promote the smooth and orderly development of cement market supply.

At present, the cement industry is facing the double test of energy saving, environmental protection and industrial intelligence upgrading. In order to implement the relevant policy requirements and accelerate the green low-carbon transformation and high-quality development of the cement industry, China Cement Network is scheduled for September 23-24. The 14th China Cement Energy Conservation and Environmental Protection Technology Exchange Conference and the 6th Intelligent Summit Forum were held in Zibo, Shandong Province. This conference will bring together industry experts, enterprise representatives and many industry stakeholders to gather group wisdom and promote energy-saving, environmental protection and intelligent transformation and upgrading of the cement industry. During

the meeting, we will also organize a visit to the demonstration project of Qingzhou Zhonglian Cement Co., Ltd. with an annual output of 200000 tons of carbon dioxide oxy-fuel combustion coupled carbon capture.

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From this point of view, similar to the coal industry, the cement industry also urgently needs to carry out comprehensive production verification work, through strengthening supervision and standardizing production order, so as to promote the smooth and orderly development of cement market supply.

2025-07-24 09:51:50

In the first half of 2025, Shanshui Cement realized an operating income of RMB 5.554 billion, a year-on-year decrease of 15.42%, and a net profit attributable to parent company of RMB -250 million, a year-on-year decrease of 52.84%.