Industry group: China's coal demand will fall for the first time in 8 years.
An industry group said that China's coal usage is expected to decline for the first time since 2017, as the power sector reduces its use. However, consumption could grow modestly next year.
The China Coal Transportation and Distribution Association's (CCTD) website cited the comments made by a representative during a meeting held on Wednesday but did not provide a precise figure of consumption.
The industry has a long way to go in tackling overcapacity, said the representative of the industry. He was referring to an initiative by the Chinese government to combat this problem.
Since the start of this year, 53.9% have operated at a loss. The minemouth price has fallen by 16.8% on an annual basis.
The representative stated that the use of coal in the building and steel industries also decreased this year, but the growth in the chemical industry partially offset the decline.
The group stated that coal consumption is expected to grow steadily in the power sector next year. However, demand for steel and construction will continue to fall.
An improving macroeconomic environment, rising electricity demand and increasing production of coal-chemical projects are all contributing factors to the improved outlook.
CCTD estimates that China's coal imports will reach 480 millions tons this year. This is down 11% compared to 2024 as the demand for coal has weakened and domestic supply has increased. (Reporting and editing by Clarence Fernandez; Colleen howe)
(source: Reuters)
