Coal companies on the edge as sales nose-dive

Dark days seem to be ahead for coal producers in China, with slower economic growth and weak downstream demand set to drag sales in 2015, notwithstanding the government decision to slash export tariffs, industry sources said on Thursday.

Shenhua Group, China's biggest coal company, has already reported a sharp slowdown in sales for November. The company sold 34 million metric tons of coal last month, down 30.2 percent from same period last year, the company said on Wednesday. China National Coal Group Corp, the other major player, reported a 16.1 percent year-on-year drop in sales in November.

"Most of the power stations in China already have stockpiles of thermal coal, and the future power demand scenario does not offer much room for comfort as it remains depressed due to the economic slowdown," said Dai Bing, director of coal industry information department at JYD Online Corp, a Beijing-based bulk commodity consultancy.