Coal supply meets domestic demand in 1H

The National Reform and Development Commission (NRDC) reported yesterday that China's coal supply meets domestic demand in the first half of 2007.

The top economic planner said the production of coal increased 10.1% to1.26 billion tons in the first half. Compared with the production growth in 2006, the growth rate was 2.5 percentage points higher this year. The total supply by major enterprises of raw coal increased 11.4% to 1.08 billion tons.

According to NDRC, China changed from a net exporter of strategic resources to a net importer, as a result of the state policy for restricting on coal export and encouraging import and appreciation of RMB.

China imported 27.07 million tons of coal in the first six months, up 47.6% over the same period last year, and coal export reached 23.12 million tons, down 27.9%. The net imports were 3.95 million tons compared with 13.74 million of net exports. The supply of coal increased 17.69 million tones in total.

For the consumers, fixed-asset investment was continuously growing and consumption products of coal rose quickly during the period.

NRDC estimated the consumption of coal for the whole year would rise 12.2% to about 1.263 billion tons, and the growth rate would be 2% higher compared with 2006.