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Li Xin, China Coal Economic Research Association: the profit of the coal industry fell 7.1% in the first half of the year.
The content below was translated by Tencent automatically for reference.

SMM News: August 22, by Dalian Commodity Exchange, China Coal Industry Association, China Coking Industry Association sponsored by the "2019 China Coal Coke Industry Congress (eighth)" held in Shenzhen.

Li Xin, chairman of the China Coal Economic Research Association, said at the meeting that the coal industry has exceeded its target of removing production capacity, and excess capacity has been effectively resolved. In the past three years, a total of 810 million tons of backward production capacity has been withdrawn, and the number of micromines has decreased from 10800 in 2015 to nearly 5800 by the end of 2018, which is the production capacity target.

At the same time, the market supply and demand is basically balanced, and the operation situation of the industry is basically stable. Since the second half of 2016, the situation of the operation of the national coal economy has gradually improved, and the basic balance of the market has been achieved in 2017 and 2018. In 2019, the operation of the coal economy should show a relatively stable situation as a whole. The consumption and supply of coal continues to grow, the market supply and demand is basically balanced, and the price is basically stable.

Li Xin pointed out: judging from the changes in the first half of the year, the downward pressure on prices has appeared. According to a preliminary estimate, in the first seven months of 2019, the consumption of coal was 2.23 billion tons, an increase of 0.9 percent over the same period last year, of which the power industry decreased by 0.2 percent, the iron and steel industry increased by 5.6 percent, the coal consumption in the building materials industry increased by 3.3 percent over the same period last year, the chemical industry increased by 1.2 percent over the same period last year, and coal use in other industries continued to decrease. As a result, the industry's total profit in the first half of the year was 139.11 billion yuan, down 7.1 per cent from a year earlier. Moreover, the decline was 4.7 percentage points higher than that of enterprises on a national scale. The main reason for the decline in profits is mainly related to the decline in coal prices.

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