The China Coal Industry Association recently stated that there are some signs of stabilization in the coal market, but the economic operation of coal has not shown a significant rebound. It is expected that the annual growth of coal production capacity will exceed the growth of demand, and imports will remain high, with pressure from supply exceeding demand still very significant. Since May, the growth rate of national coal demand, production and sales, and transportation volume has significantly declined, while net imports have continued to grow rapidly, leading to an increase in overall inventory, a sharp decline in the coal price index, and a significant drop in the market prosperity index. In analyzing the main reasons affecting the current changes in the coal market, the China Coal Industry Association pointed out that the first reason is the continued global economic downturn and increasing domestic economic difficulties.
The China Coal Industry Association recently stated that there are some signs of stabilization in the coal market, but the economic operation of coal has not shown a significant rebound. It is expected that the annual growth of coal production capacity will exceed the growth of demand, and imports will remain high, with pressure from supply exceeding demand still very significant. Since May, the growth rate of national coal demand, production and sales, and transportation volume has significantly declined, while net imports have continued to grow rapidly, leading to an increase in overall social inventory, a sharp decline in the coal price index, and a significant drop in the market prosperity index. In analyzing the main reasons affecting the current changes in the coal market, the China Coal Industry Association pointed out that: first, the world economy remains sluggish and domestic economic difficulties are increasing, leading to a decrease in coal consumption growth; second, changes in the international energy production and consumption pattern have resulted in a decline in coal demand in major economies such as Europe and the United States, and a drop in international coal prices has led to a significant increase in our net imports; third, fixed asset investment in the coal mining industry has continued to grow for a long time, with capacity construction ahead of schedule; fourth, due to climate reasons, hydropower generation is at full capacity, and thermal power has shown negative growth.
