http://usa.chinadaily.com.cn/business/2012-08/28/content_15711363...

http://usa.chinadaily.com.cn/business/2012-08/28/content_15711363.htm

Coal prices in China are likely to rebound later this year as inventories decline and demand recovers along with the economy, leading producers China Shenhua Energy and Yanzhou Coal said on Monday.

China Shenhua, the country's largest coal producer, said the domestic coal inventory, which had soared in May and June, has decreased to a "reasonable" level from its peak as China's cooling economy led to weakened demand.

The company's Vice-President Wang Jinli said inventories at China's seven major ports had fallen to 18.5 million metric tons from 24 million tons at the end of June; while inventories at power plants also reduced from 97 million tons to 85 million tons.

Announcing interim results, which showed a 17 percent rise in net profit for the first half to 26.7 billion yuan ($4.2 billion) on higher sales despite the weakening coal market, Wang said: "The coal price has stabilized and is showing signs of recovery."

He added that spot coal prices have increased by about 10 yuan per ton, after stabilizing for three consecutive weeks.

He stressed that the domestic coal price is closely related to the global economic environment as well as the mainland's economic situation, and Chinese economic growth is expected to be stronger in the second half.

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