Coal consumption gap and trend forecast in Shandong Province

Coal consumption in Shandong Province is expected to exceed 330 million tons this year, and the coal resource gap will reach about 200 million tons. The newspaper quoted Yang Deyu, chairman of the Shandong Coal Transportation and Marketing Association, as making the above statement.

Yang Deyu believes that although the coal market in Shandong Province is expected to maintain a basic balance of supply and demand with the support of foreign coal, but there will be a seasonal, cyclical tight supply and demand situation. Affected by this, the coal market in the second half of the year is forecasted and the overall balance is basically maintained. However, there is a greater possibility that fluctuations in price fluctuations will occur in different periods, regions, and varieties.

Reported that with the rapid release of production capacity in key coal-producing areas such as Inner Mongolia, Shanxi, Shaanxi, and Henan, and a number of new mines have been put into operation, the country’s new production capacity in the second half of the year is expected to be approximately 100 million tons. The annual coal production will reach 3.4 billion tons, and the overall domestic coal supply will be slightly loose. At the same time, international coal prices have continued to decline slightly recently, and coal imports will rebound. The annual coal import volume is expected to be around 150 million tons, which will have a certain impact on the domestic coal market.

The report quoted Yang Deyu as saying that the factors that stimulate coal demand will also be reflected and have an impact on the coal market. First of all, the state raised the price of electricity (or Internet access) in 15 provinces (municipalities) from June 1st, which will further mobilize the incentives for power companies to generate electricity. Secondly, as the country and regions comprehensively accelerate the construction of key housing projects for the protection of housing and water resources in the second half of the year, the consumption demand for coal in steel, building materials and other industries is expected to maintain a certain growth rate. According to preliminary calculations, the annual coal consumption is expected to reach 3.5 billion tons, and the supply and demand relationship will remain basically balanced.

Yang Deyu said that although the province's coal production can not meet the demand, but with the provincial coal "iron into the Lu, the sea into the Lu" more open channels, and "foreign power into the Lu" support, the province's coal supply and demand can maintain a basic balance, However, imbalances in supply and demand in regions, time periods and coal varieties may occur, and corresponding price fluctuations may arise.