According to the British "Financial Times" report, coal prices have fallen by nearly 10% from the high point of the year. The surge in China's hydropower supply has curbed demand for coal imports.
With the surge in demand for China Power [1.75 0.00%] in recent years and the ban on unsafe illegal mining in Shanxi, a major coal producing region, China has transformed from a coal exporting country to an importing country, which has become a key factor affecting global coal prices.
In the first half of this year, China imported nearly 50 million tons of coal for use as a fuel for coal-fired power plants, an increase of nearly 130% from 21.8 million tons in the same period last year, offsetting weak demand in Japan and Europe and pushing up global coal prices.
Mining executives believe that China's buying tide has subsided because of its soaring domestic hydropower supply and coal production growth.
As production has fallen, coal inventories in coal-fired power plants in China have increased, further tightening coal prices. Executives said that China's total coal imports this year will reach 85 million to 90 million tons, lower than the previous forecast of 100 million to 105 million tons.
The Chinese government is putting enormous pressure on local governments to shut down backward industries to reduce energy demand.
Daniel Brabner, a commodities analyst at Deutsche Bank in London, estimates that China's electricity consumption growth will slow to around 6% from October to December this year, down from 20% earlier this year.
As the demand for traditional buyers such as Germany, the United Kingdom, Spain, Taiwan, South Korea and Japan is still limited, the decline in Chinese demand has put pressure on coal prices.
Analysts said that in other areas of the commodity market, base metal prices rose as a result of lower supply of tin and copper ore and relatively strong consumption.
Standard Bank Metals analyst Leon Westgate added that the Chinese government's plan to shut down backward production capacity to save energy by September is also supporting prices, as these measures will affect the smelting of aluminum, zinc and lead.
With the surge in demand for China Power [1.75 0.00%] in recent years and the ban on unsafe illegal mining in Shanxi, a major coal producing region, China has transformed from a coal exporting country to an importing country, which has become a key factor affecting global coal prices.
In the first half of this year, China imported nearly 50 million tons of coal for use as a fuel for coal-fired power plants, an increase of nearly 130% from 21.8 million tons in the same period last year, offsetting weak demand in Japan and Europe and pushing up global coal prices.
Mining executives believe that China's buying tide has subsided because of its soaring domestic hydropower supply and coal production growth.
As production has fallen, coal inventories in coal-fired power plants in China have increased, further tightening coal prices. Executives said that China's total coal imports this year will reach 85 million to 90 million tons, lower than the previous forecast of 100 million to 105 million tons.
The Chinese government is putting enormous pressure on local governments to shut down backward industries to reduce energy demand.
Daniel Brabner, a commodities analyst at Deutsche Bank in London, estimates that China's electricity consumption growth will slow to around 6% from October to December this year, down from 20% earlier this year.
As the demand for traditional buyers such as Germany, the United Kingdom, Spain, Taiwan, South Korea and Japan is still limited, the decline in Chinese demand has put pressure on coal prices.
Analysts said that in other areas of the commodity market, base metal prices rose as a result of lower supply of tin and copper ore and relatively strong consumption.
Standard Bank Metals analyst Leon Westgate added that the Chinese government's plan to shut down backward production capacity to save energy by September is also supporting prices, as these measures will affect the smelting of aluminum, zinc and lead.
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