Modernization has paid off for the coal industry
financial performance, especially those in cyclical industries such as coal, iron and steel, and nonferrous metals, said Zhan Sheng, investment director of JZ Investment, a subsidiary of JZ Securities.
“The price is expected to fall back in August and rise again until peak demand in the winter,” Bi said.
With the growth of debtfor-equity swaps and the restructuring of coal companies, their operating cost will be further reduced. As a result, Zhang predicted coal companies’ profits will continue to grow in the second half.
Efforts to cut excessive coal capacity have prompted the healthy and sustainable development of the sector. In particular, the business conditions of coal companies have improved, said Yan.
Yan also noted that the policy of capacity reduction will remove the inffective and inefficient capacity with high costs and low competitiveness, which will improve the overall efficiency of resource allocation and capacity utilization, and optimize the sector’s industrial structure and production layout.
Effective coal capacity in 2017 will be increased by around 200 million tons year-on-year, ensuring the supply of coal and electricity, according to a meeting held by the NDRC on Monday.
A huge cargo vehicle unloads coal at a large mine in Huaibei, Anhui province.