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This Report containing reliable and authoritative data, sums up the development status and market characteristics of the Chinese coal industry during the 10th Five-Year Plan period (2001-2005), conducts an in-depth analysis of the major factors that may have impact on the domestic coal market development during the 11th Five-Year Plan period (2006-2010), studies various relevant industries that may affect the development of the coal industry; and proceeds with quantitative and qualitative analysis and forecast of the development trends of the coal market for 2006 and the 11th Five-Year Plan period.
The coal supply/demand relationship shifted from tight supply in 2004 to basically balanced supply and demand in 2005, witnessing steady and sound operations of the coal market. The coal demand is expected to continue to rise at a slower pace, in contrast to slight coal oversupply before 2007, imposing much pressure on coal price cuts. However, intensified coal mine safety rectification, regrouping of coal enterprises, government policies oriented towards stabilizing coal prices, will help avoid serious oversupply and dramatic decline in the coal prices. The coal supply/demand relationship will become relatively tense again, and production costs will continue to move towards total costs, coal prices will see a steady but rising momentum after 2008 since the coal demand will grow faster and growth of coal production capacity will slow down then.
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( Source: COALWorld.net 2006-04-12 )
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