Shenhua Group, China's largest coal producer, lowered prices again on Thursday.

Shenhua cut standard thermal coal prices by 12 yuan ($1.98) a metric ton to 602 yuan a ton, and the price of other coal products were also adjusted lower, according to the company.

It is the second price cut for the company since the beginning of this year.

In early January, the company cut the price for a ton of standard thermal coal by 17 yuan a to 614 yuan a ton.

Analysts said there has been weak demand from power plants that already have high coal inventories. It is believed that China's coal market will continue to experience excessive supply this year.

According to the China National Coal Association, the coal industry had a total deficit of 40.55 billion yuan for the first 11 months in 2013.

Up to 33 companies, accounting for 36.7 percent of the whole industry, were in the red during the same period.