The 15th Coaltrans China Conference kicked off in Shanghai on Monday. Cutting overcapacity and boosting coal demand were the focal points of the session.

‍Industry heavyweights including Shenhua Group and Datong Coal Mine Group participated in the meeting, which could set the trend for the whole coal mining sector in 2017. 

Sales for the first quarter of 2017 were better than people's expectations. The demand was solid, which sightly boosted the overall coal prices. Meanwhile, coal production has been declining in the past three months. 

A Coaltrans China report indicates that total coal output for the first quarter of 2017 was about 800 million tons, a decrease by 1.4 percent year on year.

Data also shows that the current coal price registers at 604 yuan per ton, down 1 yuan compared to last month. More workers are coming back to work in major coal producing regions. But due to tight security regulations and environmental laws, the production is restricted. 

Coal companies in the Inner Mongolia Autonomous Region reported 10-20 yuan per tonnage price slide. In Shaanxi Province, another important coal manufacturing area dropped by 20-65 yuan per tonnage.

Imports is another important source for China’s coal. It is estimated that China will import over 100 million tons of coal from Indonesia, Australia and Russia this year, accounting for 10 percent of the country's total. The price is expected to be the same as last year, around 700 yuan per ton.