"The downturn in industry looks set to deepen," said Capital Economics' senior China economist Julian Evans-Pritchard, with thermal coal prices still climbing.
This has come at the same time as China's property sector has faced increasing pressure to rein in its debt.
The most notable example, the China Evergrande Group, owes more than $300bn and finds itself on the brink of default.
Another property developer Fantasia defaulted while Sinic Holdings has warned it is at risk of going down the same path, sparking fears of wider problems.
"The slowdown in the property sector will affect the activities of firms in areas such as construction contracting, building materials, and home furnishing," said Yue Su from the Economist Intelligence Unit.
Despite this, China's central bank has downplayed the risk of contagion over the weekend, breaking its silence on the crisis.
Evergrande's "financial liabilities make up less than one-third of its total liabilities, and the creditors are diverse," said Zou Lan, a director at the People's Bank of China.
"Individual financial institutions are not at high risk exposure to Evergrande. Its spillover risks on the financial industry are overall controllable."
Woei Chen Ho, an economist at United Overseas Bank in Singapore, says the energy crunch and crackdown on the property sector means the bank is likely to downgrade its growth forecast for China for the year.
"The numbers are actually much weaker than what we thought. I think in the fourth quarter it will be even slower because we will see more impact from the energy crunch."