China's coal demand, output slow on economic downturn
28/10/2008 16:02
China's coal output slowed down in September after power consumption
weakened for five months in a row on economic downturn, the Beijing News
reported today citing sources with China Coal Transportation and Sales
Society(CCTS).
The output of raw coal dropped to 229 million tonnes in
September from August's 232 million tonnes, figures from the State
Administration of Work Safety show.
Up to 1.99 billion tonnes of coal were
churned out in the first nine months, up 11.43 percent from a year ago. The
output growth rate was down from 11.46 percent for the year ending August,
according to the data provided by Coalworld.net.
Analyst with CCTS Li Chaolin
said the closure of small-sized coal pits contributed to the shrinking yields.
And the economic slowdown and the enterprise's moves to save energy were also
factors behind the oversupply.
Thermal power consumption declined by 3.4
percent to five-month low in September. Electricity used by the textile
industry, hard-hit by the ailing exports, was only 1.9 percent more than the
same period last year. By contrast, the power consumption growth rate advanced
11.20 percent in January-November of last year from a year ago, according to
Wind Financial Data.
Power coal output, which took up 40 percent of the
total, declined 7.64 million tonnes, or 12 percent in September from a month
ago. As a result, overstock has plagued the northern Qinhuangdao Port, China's
largest port for coal shipment as coal inventory broke the 8.9 million tonnes
mark on Sept 21.
Vice chairman of China National Coal Association Pu Hong
predicted the coal stock in the port would keep above 8 million tonnes in the
short term.
China's GDP slowed to 9 percent in the third quarter as the
spreading credit crisis sapped foreign demand for Chinese goods. GDP for the
first three quarters slowed to 9.9 percent, the first single-digit expansion
since 2002.
Xinhua
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