Chinese coal demand may raise 4 % to 6 % in 2010

A forecast from the China National Coal Association was saying that China may consume between 4 % and 6 % more coal in 2010 on continued economic growth.
As per report, demand from the world's biggest producer and consumer of coal may expand to about 3.4 bn tons from this year. China uses coal to operate about 80 % of its power plants and to make steel.

Mr Zhang Guobao director of National Energy Administration said that China's energy demand may rise 3.6 % in 2010.
Mr Martin Wang a coal analyst at Guotai Junan Securities said that, "Growth in coal demand should be fairly stable in 2010. Economic growth by 2010 should remain as strong as 2009, so power demand will be strong as well."

Data from the National Bureau of Statistics showed that electricity generation in the world's third biggest economy climbed at the fastest pace in almost five years in November as industrial production grew 19 % in the month.
Mr Wang expects coal consumption to increase between 6 % and 7 % to about 3.2 bn tons by 2010.

China Securities Journal said that the country's coal production capacity may expand by almost 300 mm tons in 2010. The Journal said that supply and demand of coal in China should stay largely balanced next year. Short term supply tightness in certain regions will still be seen in the Q1.
The official said that the provinces of Hubei, Hunan, Henan, Jiangxi and Sichuan and the municipality of Chongqing are facing tight electricity supply partly because of falling coal stockpiles at power plants.