Coal Industry Hits Hard Times In China

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.

Sales manager at Shanxi Coking Coal Group Co. Ltd. said,

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.

Click here to read the full MarketWatch report.

Get the Latest Coal Investing Stock Information

Get the latest information about companies associated with Coal Investing delivered directly to your inbox.

By selecting company or companies above, you are giving consent to receive email from those companies. And remember you can unsubscribe at any time.

Coal Report small 

Get Our Expert Guide to Coal Investing FREE!

  Download this FREE Special Report, Coal Price Forecast 2015 Types of Coal, Coal Prices and Coal Stocks

Leave a Reply