Tuesday, February 03, 2009
China's coal industry may level off in H2 2009, Everbright Securities predicts
Tuesday, 03 February 2009
Chinese coal industry will continue to see sluggish demand in the first half of 2009 and may level off in the second half of 2009, predicted Guo Guodong, an analyst with Everbright Securities Thursday after the national economy operation figures come out. It's hardly to see market reversal during the second half of 2009 and the year 2010 deserves expectation, said Guo.
China's coal industry suffered about 50 percent of profit drop in the fourth quarter of 2008 in line with 40-50 percent slump of coal prices.
Guo said that market situation may worsen in the first half of 2009 since it would take three to six months for governmental stimulus plans to pay off.
Production cut and halt as well as long-lasting holidays will have less negative effect on the coal industry after March when new supplies add.
Guo added that coal industry plays a limited role in spurring domestic demand since its industry chain is not long enough.
Source: China Mining
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