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Monday, 20 July 09
CHINAS COAL DEMAND, OUTPUT TO PICK UP IN H2 - GROUP 2


Financial24 reported that, China's coal demand is expected to gradually pick up in the second half of the year, and coal output will likely grow fast as small mines speedily return to production, the China National Coal Association said on its website .

'The coal market is facing increasing pressure from oversupply,' said the association in a statement . Coal consumption in the power sector fell in the first half of the year .

Power plants connected to major grids consumed 315 million tonnes of coal, down 8.9 percent on year, the association quoted Zhong Neng Power Industry Fuel Co .

But China's power generation in the first six months of the year declined 1.7 percent from a year earlier, the National Bureau of Statistics data showed . The recovery of the steel sector, however, pushed coal consumption at China's steel mills up 1.6 percent in the first six months of the year to 230 million tonnes, the association said .

China's June raw coal output rose 12.3 percent from a month earlier to a record high of 279 million tonnes .

China, the world's largest coal producer and consumer, had shifted to being a net coal importer in the first five months of the year, with monthly imports hitting record highs above 9 million tonnes in April and May .

June coal import data is expected to be released within the next few days .

Sourc:Financial24



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