Report: China's Coal Output Jumps 14.4% So Far in 2008

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Researched by Industrial Info Resources (Sugar Land, Texas)--In the first three quarters of 2008, China's coal output totaled 1.93 billion metric tons, up 14.4% or 3.4 percentage points higher compared with the same period last year, according to data released on October 31 by the National Development and Reform Commission. The report states that the country's coal production has been accelerating as power output decreases and that the tension between supply and demand is easing.

Coal exports totaled 35.72 million metric tons, down 6.1%, and imports reached 32.37 million metric tons, down 16.2%. Beginning in August, the slowdown in demand has helped to balance supply. Market prices have been gradually falling after rapidly rising in the first half of the year, and stockpiles at port and power enterprises also increased. In the first eight months of the year, the coal industry reportedly brought in $20.29 billion in profit.

Power output reached 2.61 trillion kilowatt-hours, up 9.9% but 6.5 percentage points lower compared with the same period last year. Thermal power output grew 8.2% and hydropower output grew 17%. Starting in June, the growth rate of power generation has stayed below 10%. The report states that social power consumption increased 9.7%, 5.4 percentage points lower year over year.

Major natural disasters in China this year had caused a tension in coal supply and delayed grid construction. During the summer, demand control was applied to 17 regions. However, the tension began to ease in September as demand fell. The profit of the power industry fell 78.5% to $3.36 billion.

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