Source: CCTV.com

04-03-2008 11:55

Special Report:   Winter Storm Relief

Coal supplies in the country are returning to normal after severe winter storms hit the country earlier this year. Prices in the country have also been stabilized.

Coal supplies in the country are returning to normal after severe winter storms hit the country earlier this year. Prices in the country have also been stabilized.
Coal supplies in the country are returning to normal after
severe winter storms hit the country earlier this year. Prices
in the country have also been stabilized.

China has suffered a power shortage since the beginning of the year, after severe winter storms damaged many power grids and facilities all around the country. But the situation has now been eased, with the country's coal reserves for power generation on the rise. The end of the peak winter heating period has also reduced seasonal demand.

Meanwhile, power plants around the country have increased their coal stockpiles to a minimum of 15 days worth of coal, and the average coal price has also dropped.

Pu Hongjiu, Executive Vice Chairman of China National Coal Association said "The market supply and demand is balanced now. The coal shortage has ended, which has lead to a drop in the coal price of around 10 to 20 yuan per ton."

China's National Coal Association says the gradual recovery of both transport links from the snow disaster and heightened coal output has relieved pressure on power coal supplies. And many of the country's major shipping ports have reached their maximum capacity for coal stockpiling.

But some port operators worry that surging coal shipments many lead to excessive inventories.

Pu Hongjiu said "Overall coal supplies in China will be stable this year. However some Chinese cities might still experience some shortages this year, but they will only be seasonal or regional issues."

China now produces nearly 5 million tonnes of coal every day. This figure was only 4 million tonnes prior to the Spring Festival.

Some experts suggest that in order to avoid further power crises, coal producers should strengthen check-ups and maintenance at the coal mines, and adjust their production plans for this year. They also point out that China should further reform its transportation systems, while building large coal reserve yards in Southern and Yangtze River regions.

 

Editor:Xiong Qu