China taps the brakes

RAW coal output from China is expected to rise 3.7% from a year ago to 3.65 billion tonnes, according to reports.
China taps the brakes China taps the brakes China taps the brakes China taps the brakes China taps the brakes

Image courtesy of Shenhua

Noel Dyson

The reports, based on a National Development and Reform Commission report, say that the coal output increase is a sharp drop on the increase last year.

This lower than expected coal production forecast – if true – could be a boon for the seaborne coal market.

Opening the National People’s Congress, Chinese Premier Wen Jiaboa reportedly said Beijing was aiming for a 7.5% economic growth rate this year.

That is a step down from the 8% target China has held for the past eight years.

This could be purely a moot point though because the country’s actual economic growth has outstripped the target in recent years. Last year China’s gross domestic product grew 9.2%.

China also is reportedly working on making changes to how it prices power to “better reflect” the price of coal.

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