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Friday, 26 November 10
CHINAS COAL INVENTORY STAYS HIGH FOR 22 MONTHS AT 220 MLN T, ASSOCIATION


Xinhua News Agency reported that, China’s coal inventory has stayed high and unchanged for 22 months to be around 220 million tonnes, reflecting a balanced demand and supply on the domestic market, said Wang Xianzheng, head of the China Coal Industry Association.

Wang noted that the major problem bothering China’s coal market is the structural oversupply of coal, which refers to regional and seasonal oversupply of a certain type of coal.

At present, the operational coal production capacity and the capacity under construction in China have amounted to nearly 3.8 billion metic tons (tonnes), of which, 2.3 billion tonnes of capacity has been verified, and it has basically reached the state’s targeted capacity for 2015, said Wang.

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As for the coal price surge in some places of China, Wang held that it mirrors that Chinese coal market is changing in line with the international market.

However, Wang pointed out the amount of coal that really had a price hike is no more than one billion tonnes, which makes up less than one-third of China’s total coal production capacity. The price of neither metallurgical coal nor contracted steam coal has increased, said Wang.
Source: Xinhua News Agency / Hellenic Shipping



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