On November 5, 2014, the 21st Century Business Herald reported that, at 400 million metric tons, the inventory of coal in 2014 has hit a record high in China. Seventy percent of coal companies are in the red.
At a November 4 press conference, Song Yuanming, Deputy Director of the State Administration of the Coal Mine Safety Supervision Bureau, stated that there is a serious oversupply of coal on the market.
According to statistics, 23 State-owned companies that account for 76.7 percent of the 30 publicly listed coal companies saw their profits slashed in the third quarter. The industry wide decline was, on average, 67 percent. On October 17, the China National Coal Association released information that 70 percent of all coal companies in China are losing money.
The earnings for one metric ton vary between a profit of six yuan and a loss of over 20 yuan. The coal price index of 136.3 for the second half of 2014 reflects a 38.9 percent or 86.7 point decline from its peak in July 2008. Experts expressed that the coal inventory level in 2014 will exceed 400 million metric tons, hitting a record high in history. In 2009, the coal inventory level was 50 million metric tons.
Source: 21st Century Business Herald, November 5, 2014
http://money.21cbh.com/2014/11-5/zNMDA0MDRfMTMzMzIzNA.html