China's National Energy Administration deputy director Wu Jin lately stated that China aims to improve its coal output through restructuring. The coal output will be affected by restructuring and integration in the short term, he said, but will observe an increasing trend in the long term. Meanwhile, he pointed that the integration across the whole country will keep pace with the supply and demand in the coal market, in order to avoid impacting the overall output.
The current situation of shortage of coal, Mr. Wu stated, is due to the following reasons:
1. Limited hydroelectric capacity leads to an increase in thermal-based capacity, resulting in increased coal consumption.
2. Power generation has increased due to the current lower temperatures.
3. The recovery of industry results in growing demand for coal.
He also stated that in 2010 demand and supply of coal would remain stable due to regulation.