Article: China to face tight coal supplies in Q1 2011 - Experts

Source: http://www.steelguru.com/raw_material_news/China_to_face_tight_coal_supplies_in_Q1_2011_-_Experts/182665.html

1) Total Coal inventory
Mr Yang Xianfeng vice chairman of China Coal Transportation Sale Society said at the 2011 Ocean Shipping Coal Forum that of China 218 million tonnes of coal inventory at the end of November, 40 million tonnes were kept by key coal production enterprises, 59.58 million tonnes by power generation companies and 22.34 million tons stockpiled at major ports.


2) Weather 
Mr Xie Juchen a power fuel expert and former general manager of Zhong Neng Power Industry Fuel Co Ltd. pointed out that abundant rainfall boosted hydropower generation by 30%YoY and reduced coal consumption over the period as evident in 2010 Q3. 


3) China 12th 5-year plan
He said that experts have agreed that coal demand in 2011 would increase at a slower pace as the country experiences economic restructuring in the face of pressure to conserve energy and reduce carbon emissions. Efforts to curb the development of high energy consuming industries are also expected contribute to the slowdown.


4) Increase in coal supply capacity
Despite these figures, 2011 is still expected to see a boost in coal supply capacity. Mr Yange noted that newly increased coal production next year is expected to amount to 300 million tonnes. Furthermore, increasing exports from Australia, Indonesia, Russia and Vietnam and the operation of new railway lines will also help push up supply and increase shipments from Shanxi and the Inner Mongolia Autonomous Region.