Coal Industry Profits Rise 80%

The NDRC expects that the coal prices will remain stable in the second half due to the government's increased efforts in pollution and emission reduction

China's coal industry reported a total profit of 122.5 billion yuan during the first five months this year, rising 80.9 percent from the same period last year.

According to the National Development and Reform Commission (NDRC), China's domestic coal production reached 1.57 billion tons in the first half, up 20.1 percent year-on-year. Coal transportation volume was 980 million tons during the same period, up 17.5 percent year-on-year.

Data from China's customs bureau shows that over the first six months, China imported 81 million tons of coal, rising 70.6 percent from the same period last year, while exporting 10 million tons, down 13 percent.

Starting from May, hydropower generation increased, alleviating coal inventory pressure on coal-fired power plants. By the end of June, major power plants have a total of 57.8 million tons of coal storage, increased 8.23 million tons from the end of May. Coal stockpiling in Qinghuangdao Port was 5.66 million tons, down 540,000 tons from end May.

The NDRC said that coal prices have shown an upward trend since mid-April after a gradual decline early this year. The price touched a low of 680 yuan per ton in late March but later returned to 765 yuan. The commission expected that the coal prices will remain stable in the second half due to the government's increased efforts in pollution and emission reduction.

To rein in the coal price rise, the NDRC in late June asked major domestic coal producers not to raise prices. The NDRC's price department has been urging coal companies to honor 2010 coal contract prices and return any additional charges gained from higher prices by the end of June.