China’s coal demand slows as the economy wobbles

David Nealis President of Blue Bridge

China’s coal demand slows as the economy wobbles

China's ports are becoming overwhelmed with stockpiles of coal as the Chinese economic slowdown has substantially slowed domestic demand for the resource.

Coal stockpiles at the Qinhuangdao, Huanghua and Tangshan ports in north China's Hebei province have risen to 16 million tons, according to a statement recently posted on the website of the Hebei Port Group Co.

The nation's coal demand has slowed in recent months as domestic economic growth has decelerated amid the sluggish global economic recovery, the ongoing eurozone debt crisis and weak US demand for Chinese products.

The manufacturing slow down curbed China’s power consumption, in the first five months of 2012, gross power consumption increased 5.8 percent year on year to 1.96 trillion kilowatt-hours, much lower than the 12-percent increase registered during the same period last year.

China, the world’s 2nd largest economy, continues to be the most important market for companies looking for growth and Chinese companies continue to globalize by investing and selling their products in new markets; what is your company’s strategy for engaging China?

 

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