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Coal has more surplus pressure in H2

By Tu Lei (chinadaily.com.cn)
Updated: 2006-08-25 09:36

There has been a coal surplus since the beginning of this year, and there will be an oversupply in the second half, said He Xiangbin, director of the Research and Consultation Department ofwww.cctd.com.cn, adding the surplus will continue to build in the next two years.

Recently, China launched a set of rules and regulations such as increasing loan interest, to keep investments from overheating. Analysts predict more macro-control policies will follow in the second half of this year.

Statistics show the coal demand in the first half of the year dropped two percent from that of the previous year and coal consumption in the production of electricity and steel decreased in the second half of the yearIndustry investment structure, especially that of the heavy industry, will be optimized and will cool down, which means coal consumption will also decrease.

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The full text is available in the August Issue ofChina Energy.