China Coal Demand to Fall in H2
BEIJING, Jul 19, 2012 (Menafn - SinoCast Daily Business Beat via COMTEX) --China's demand for coal will continue to decline in the second half of 2012, predicted the China National Coal Association (CNCA).
Meanwhile, its coal supply will still see a rapid growth and net import of coal will go up. Consequently, the supply will obviously exceed the demand, imposing bigger pressure upon coal companies.
In the first half of this year, China's demand for coal kept decreasing. Its coal consumption stood at 1.97 billion tons, slipping by 2.8 percent year on year, 6.6 percentage points slower than a year earlier.
At the same time, the country's coal supplying capacity was enhanced greatly because of four factors. Firstly, from January to June, fixed-assets investment in China's coal industry amounted to CNY 210.3 billion, rising by 23.1 percent from a year earlier.
Secondly, the country's coal output continued to go up at a pace of 5.6 percent year on year, reaching 1.91 billion tons. Thirdly, coal transportation fell across the country. Fourthly, its net import of coal jumped by 77.5 percent year on year to 134.08 million tons.
In the eastern Chinese province of Jiangsu, 9.02 million tons of raw coal were turned out the first five months of 2012, stepping down by 0.9 percent year on year, according to the National Development and Reform Commission.
In the period, the province sold 7.67 million tons of commercial coal during this period, slipping by 2.8 percent from a year earlier.
In May alone, Jiangsu witnessed a decrease 104,000 tons or 5.5 percent year on year in its raw coal output, which stood at 1.78 million tons. Its commercial coal sales dropped by 119,000 tons or 7.1 percent year on year to 1.55 million tons.
By the end of May, the commercial coal stockpile of all Jiangsu-based coal companies had soared by 276,000 tons or 56.2 percent year on year to 767,000 tons.
In Henan, central China, the coal output declined by 23.7 percent year on year to 60.43 million tons in the first five months of 2012. Its coal sales stepped down by 19.3 percent year on year to 79.07 million tons.
In the central Chinese province, railways transported 26.49 million tons of coal in the five months, marking a fall of 9.5 percent from a year earlier.
In May alone, the province's coal turnout hit 11.12 million tons in May, dropping by 26 percent from a year earlier. Its coal sales fell by 26.6 percent on a yearly basis to 15.31 million tons. Railways in the province transported 5.4 million tons of coal, down by 12.1 percent year on year.
(USD 1 = CNY 6.36)
Source: www.yicai.com (July 19, 2012)
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