As stated by an insider at the China Logistics Information Center, Chinese coal output in 2010 is expected to reach 3.3 billion mt. The analyst in question said that coal supply in China will continue to fall short of meeting market demand and so coal prices will continue to rise in the first quarter of 2010, though at the same time prices are likely to fluctuate somewhat due to lower seasonal demand. Nevertheless, he added, the price will move on a steady uptrend throughout the whole of 2010.
According to the same analysis, various factors are expected to support the steady increase in domestic demand for coal in 2010, including the stable trend of international economic recovery, the rapid development of domestic coal-based industries such as power supply, iron and steel, chemicals and building materials, as well as the state's proactive fiscal policy.