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2007: Coal Supply & Demand to Balance



  The National Development andReform Commission of China(NDRC) released on August 27a report on the first-half operation antthe second-half expectation of the coalindustry. The coal industry is predictedto have a consecutive balance of sup-ply and demand this year with a lessstrained supply in the second halt.
  
  Fast growing production, transport,and demand
  
  This year, due to faster growinginvestment and demand coupled withwider increase in transportation capac-ity, the coal turnout is rebounding.
  The fixed-assets investment in theindustry saw rapid increase in the firsthalf. In particular, the investment inreal estate, a strong momentum to theincreasing coal demand, jumped 28.5%,6.7 percentage points higher than thefull-year of 2003. In this regard, in thefirst half the domestic coal consumptionis estimated at roughly 1.263 billiontons, leaping about 12.2%, more than 2percentage points higher than last year.
  From January to June, 599 milliontons of coal was transported by trains,rising 10.1% year on year. The rise is 3.8percentage points higher than the full-year of 2006 but still slower than that inthe coal production and demand. RailTransportation strain still reins in coalsupply, though more slightly than before. ......
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