China’s Chance To Stabilize Coal Supplies May Be Here

Tuesday, October 14, 2008 6:55
Posted in category China Logistics

While the news in the US and EU is grim, and the ripple effects are being felt in China, it is stories like Experts expect falling coal market in China on oversupply  that offer something of a silver lining for some (like myself) that feel China has grown too fast.

Mr Li Xuegang vice director of the Coal Transportation & Sales Society of the city said that besides, the decreased demand for coal from power plants can partly blame for piles of resource congested at the port, remaining 8.3 million tonnes. This was a sign of oversupply.

Keeping in mind the fact that coal stocks for the last 2 years have been short, and that there has been an ongoing struggle with energy capacity, this could perhaps be an opportunity for power plants to bring safety stocks up as prices fall and rail capacity improves.

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3 Responses to “China’s Chance To Stabilize Coal Supplies May Be Here”

  1. Alex says:

    October 21st, 2008 at 5:10 am

    Not sure about the article you linked to. Their prices were way out of whack and a thermal/coking coal comparison is as apple to oranges as they come.

  2. Rich says:

    October 21st, 2008 at 7:07 am

    Alex

    Thanks for removing the sugar on your comment, and I would agree that thermal and coking coal are different goods.

    I was simply going on the information the article provided. coal consumption was down at power plants, there increased stock on the market, and I viewed that as an opportunity for power plants around china to increase their reserves from 3 days to 10-15… as they have been trying to do.

    R

  3. The Green Leap Forward 绿跃进 » Blog Archive » Stanford’s David Victor on Coal says:

    November 16th, 2008 at 3:29 am

    […] much like the one that has been created for oil. Fortunately, there seems to be just a little more breathing room in the supply situation lately, […]