The coal industry is still in the doldrums

This year, coal prices continued to fall, demand fell sharply, output continued to rise, and the total social deposits kept rising, resulting in a clear oversupply in the coal market.

In terms of coal exporting countries, Indonesia, Australia, and other major coal exporters are able to accelerate the release of domestically produced, export volume has increased significantly; coal consumption and importer, the slowdown in world economic growth has led to the continued sluggish coal demand in the international market, major coals such as Europe, Japan and South Korea. The growth of demand in importing countries is sluggish; the continuous improvement of shale gas extraction technology has led to adjustments in the energy consumption structure of the United States, which has also contributed to the coal supply and demand in China while promoting US coal exports.

As the main energy source of 70% of total energy consumption in the country, the rise and decline of the coal market directly depends on the macroeconomic situation. Statistics from the National Bureau of Statistics show that the average daily electricity generation in June was 13.1 billion kWh, with a zero growth rate; while the growth rate of power generation at the beginning of the year remained above 7%, and the growth rate at the end of 2011 was even closer to 10%.

Coal prices fell sharply and coal companies bear the brunt. Due to the fact that the price of coal in the market has been much higher than that of key contract coal (mainly used for power generation in power plants) in the past few years, the more coal companies with a high degree of marketization, the greater the impact. But overall, even at current price levels, coal companies are actively implementing various measures to cope with this downturn, and coal companies still have some room for profit.