Shanxi Coal Conversely Increased by 10% in May

Since the beginning of this year, the national overcapacity has affected the accelerated development of the industry in Shanxi Province, especially the coal industry. A few days ago, the Shanxi Provincial Bureau of Statistics released statistics on coal in the first five months of Shanxi Province, showing that despite insufficient demand, Jinan's production and sales growth has been weak, but coal is still the main factor driving the steady growth of Shanxi's industry.

The coal industry is a strong cyclical industry with fluctuations far exceeding economic fluctuations. Since June 2012, coal prices have entered a downward path. From January to May this year, the ex-factory price index of coal producers in Shanxi Province fell by 17.8% year-on-year, still falling deep within the interval. In Shanxi, Shaanxi, and Mengxi, the coal production capacity has been continuously released. The second quarter was the traditional off-season of the coal market, and the demand for coal also slowed down. In addition, since May, floods have occurred in most parts of the South, and hydropower output has increased significantly. These factors have further affected coal demand.

The lack of demand has made Shanxi's coal production and sales grow weaker. Under the background of the economic growth and adjustment structure in the country, the coal market in Shanxi Province is in short supply, inventory continues to increase, and the production and sales of raw coal continue to slow. January-May sales and sales data of Shanxi Coal Co., Ltd. showed that the output of raw coal was basically the same as that of the same period, and both sales and Sinotrans showed negative growth year-on-year. From January to May, coal sales in Shanxi Province totaled 290 million tons, a year-on-year decrease of 0.4%, a negative growth, 0.6 percentage points lower than the January-March growth rate and 2.1 percentage points lower than the January-February growth rate. Production is consistent and continues to fall.

From the perspective of the progress of Jin coal flow to key industries, the total flow of electricity, metallurgy, and chemical industries from January to April totaled 140 million tons, a year-on-year decrease of 1.5%, and accounted for 90.5% of the railway's external traffic. Billion tons, a year-on-year decrease of 1.8%; metallurgy completed 0.2 billion tons, an increase of 4.0%; chemical industry completed 10 million tons, a year-on-year decrease of 7.1%.

Although the coal industry has encountered overcapacity and insufficient demand, coal is still an important support for Shanxi's economy. From January to May, the cumulative industrial added value of Shanxi Province increased by 11.0% year-on-year, which was 0.7 percentage points lower than that of the same period of last year. Among them, coal