Coal enterprises around China have started to reduce salaries of their employees in quick succession recently, and some have resorted to production cuts in response to the steep fall in prices of the fossil fuel, sources reported. As of Jul 10, thermal coal of 5500 Kcal/kg, NAR basis, at Qinhuangdao port has dropped to CNY 610 per tonne down CNY 235 per tonne from late Apr when this round of price fall began, showed data from industry portal China coal Resource.

The price has been on the downward track for 12 consecutive weeks. China coal energy Co Ltd further lowered salaries of all the staff in its mining areas by 10% in May, after an earlier cut of the same extent in Apr, and it has planned layoffs in junior employees in the near future.

Shanxi coking coal Group, China’s top producer of the coke making material, also reduced salaries of staff in its subordinate coal minesindirectly by transforming means of salary payment from 100% by the group to 70%, with the remaining 30% by separate coal mines. Other leading coal companies in central China’s Henan province such as Yongcheng Coal and Electricity Group and Yima Coal Group, etc., also planned to decrease salaries to some extent, insiders noted.

Source - en.sxcoal.com

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