According to a new report issued by China Coal Transport and Distribution Association (CCTDA), China’s coal industry is still plagued by overcapacity and overall demand for coal this year will likely remain stable or decline slightly year on year. Through an orderly release of high standard coal capacity, coal supply for the coming winter-spring period will be basically guaranteed.
However, due to some declines in hydropower, low inventories at some coal enterprises and large ports and tight transportation capacity in the northeastern, central and southwestern regions of China, these regions will likely face some tightness of coal supply in the short term. In addition, amid a shortage of coking coal supply and a surge in coking coal prices in the international market, coking coal prices in the domestic market will likely continue to follow a rising trend in the coming period.