MarketWatch reported that 2012 has been the toughest year for China’s coal companies since 2002. The China National Coal Association stated that the combined profits for the first six months for 90 major coal miners dropped 8.8% from the same period in 2011, the first decline of its kind in a decade.
As quoted in the press release:
The industry conducted market reform in 2002, and since then Chinese producers have enjoyed ten golden years.
Although several executives from major companies said prices would increase over what remains of the year, most industry insiders don’t expect to see a return to hefty profits any time soon.
Our main clients are power plants and steel mills, so we have to sell on credit to trigger our sales due to weak demand from our clients.