Coal location charges dropped harshly in 2009 the likelihood of not

April 22 hearing of household coal charges and inventory in the April 13-19, a minor boost throughout the week. Qinhuangdao coal charges are “not short off-season” prices. Industry sharp out that the “do not short off-season” is restricted to making coal charges, the consequences emerge restricted to Sinotrans. Although demand from the downstream down turn since 2008, but proceeded in 2009 constrained the influence of restricted output, coal location charges do not fall probability.

Port of Newcastle, Australia (NEWC) coal spot price terminal week (April 13-19) plunged 0.12 U.S. dollars / tons, Pericyclic than a forfeit of 0.2%, on Central than 4.7 per 100, down 49.9% year-on-year, April 17th for 63.12 U.S. dollars / ton. April 20 Qinhuangdao endowed blended Shanxi average 57.8 yuan / ton, higher Pericyclic than 8 yuan / ton or 1.3%, on Central, more than 3.6 per 100, down 2.9 per 100 year-on-year. April 18 Qinhuangdao Port coal stock for 3.72 million tons, an enhance Pericyclic than 183,000 tons or 5.2% forfeit on 37.8%, 42.5% year-on-year decline. Both prices and inventories rose slightly.

CICC is the coal industry analyst Han LONDON exchanges spiky out that the month of the every year coal consumption season 3-5, the spot market coal mine rehabilitation depends on the strength of the middle class. Domestic steam coal by the end of March since the spot market is not condensed off-season phenomenon, Qinhuangdao coal prices rose slightly. The pursuing May the trend of coal prices will trust the main effecting paddocks in Shanxi coal mine complex effecting small progress, as well as the requires of downstream users can reach to rise. As a result of Shanxi, Inner Mongolia and Shaanxi and other regions of the calm of the forceful coal market, coal spot prices have declined significantly and the probability of not.

Shanxi provincial government lately passed “Shanxi coal commerce restructuring and revitalization of planning” (referred to as the “planning”). “Planning” that it would replacement no effort to encourage integration of the Shanxi coal commerce restructuring and amalgamations, and financial tasks to pace up the building of the coal cycle. Scheduled for 2011 in the living coal founded on the 2600 decrease of 60%, to 1000 the number of coal mines and at the identical time buying into in a assembly of about 300 billion will be changed to enhance little and medium-sized coal mines for more than 1.2 million tons annual output capability of large-scale mine.

CITIC Securities chief coal industry analyst Wang Ye said, “planning” the short end of the second quarter will result in the domestic coal market tight supply capacity. The shutting down of the local small coal mines account for about 70% of the volume of local mineral resources, and ultimately will affect the output of 215 million tons in Shanxi Province. Coal in 2008 in accordance with the local railway and road transportation cases (outside the coal output accounted for 62.20%), brought about by the shutdown of about 134 million tons of coal to reduce the outside.

Shanxi coal part, as asserted by released facts and numbers, the first quarter of 2009 coal output in Shanxi Province for 110 million tons, an decline of 17 million tons, coal traffic out-of-doors the 94.24 million tons for the identical time span last year fallen by almost 30%. China Coal Transportation and Marketing Association facts and numbers display that in 2008 the first quarter of 143,190,000 tons coal-producing Shanxi Province. Compared the two, the first quarter of 2009, Shanxi coal output 30 million tons or over.

Analysts believe that, although the lower reaches of the short term the demand for the coal industry will not be any sharp rebound, but the coal resources in Shanxi Province, the production planning will continue to fundamentally change the supply side of the coal industry in order to change the coal industry focus on the industrial structure and improve degrees, to some extent, support the domestic coal prices.