China has made progress in reducing excess coal capacity by advancing economic structural reform. 
Coal output declined 9.7% year on year to reach 1.63 billion tonnes in the first half of 2016, widening from a 5.8% drop recorded in the same period last year, China's National Development and Reform Commission (NDRC) said on its website. 
Coal enterprises and major electric power plants saw their coal stockpiles drop as of the end of June, down 8.6% and 16.6%, respectively, according to the NDRC. 
The decline in coal stocks resulted in a narrowed decline for major coal business profits, reaching 3.5 billion yuan about (US$525 million) in the first five months, down 73.2% year on year, compared with a 92.5% drop in the first quarter, China's (Xinhua) News Agency said. 
Meanwhile, coal consumption nationwide edged down 5.1% year on year to reach 1.82 billion tonnes in H1, according to the NDRC. 
China is the world's largest producer and consumer of steel and coal. The two industries have long been plagued by overcapacity and felt the pinch even more in the past two years as the economy cooled and demand has fallen.