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(chinadaily.com.cn)
Updated: 2007-07-20 14:27

Statistics from the China Logistics Information Center (CLIC) showed coal production in the first half of this year had grown steadily despite a slight drop in price.

Coal resources had an accumulative growth of 1.1 billion tons in the first six months of this year, a 12.1 percent increase compared to the same period last year. China became a net coal importer in March as purchases of foreign coal jumped to record highs. Imports in the first half of the year saw a 47.6 percent hike to 2.7 million tons.

Coal consuming industries, including electricity, metallurgy, building materials, and chemical industry, on average experienced a growth of more than 10 percent in the same period.

Analysts from CLIC noted that China turned itself into a net coal importer in March, due to two factors. First, the burgeoning development in the electricity and metallurgy industries is pushing domestic coal demand to new highs. The government’s import and export policy shift also contributes to the trend.

CLIC predicted coal supply and demand to remain balanced in the upcoming months while the price of coal is expected to decline as the peak demand for electricity passes.