Shangdong Energy Group reported a raw coal output of 25.29 million tons in the first quarter, an increase of 7.15 percent year on year, according to the company's quarterly market analysis meeting on April 19.

Amid a sluggish market, operating revenue managed to achieve a steady growth of 39.57 percent to hit 52.5 billion yuan.

In the first three months, steam coal in the Pan-Bohai area has experienced a streak of falling prices, which forced Shandong Energy to cut their prices. The commercial coal price of March was set at 475.34 yuan per ton, a month-on-month decline of 32.35 yuan per ton or 6.3 percent.

Faced with the grim coal market situation, Shandong Energy Group tightened its grip on key issues such as costs, management and sales, in order to improve the comprehensive utilization rate of the various production factors. The coal order of this year comes to 55.79 million tons, with the negotiating coal order standing at 14.69 million tons. The company also received a low-cost financing in the sum of 5.5 billion yuan from large state-owned banks in the first quarter and centralized the procurement of 60 kinds of supplies worth some 200 million yuan, saving a large amount of money. In addition, the full cost of raw coal decreased by 17.55 yuan per ton, a decline of 5.14 percent in the first quarter of the year.

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