December 03, 2008

Coal to remain in shortage in China during H1 of 2008

According to the Chinese ministry of commerce of, the supply and demand relation between domestic major consumer goods and producer goods would remain stable in general and market would be balanced but some commodities will be in a short supply in some areas and in some period.

Investigation results of Ministry of Commerce shows that 8 varieties among 600 consumer goods will be in a short supply in some period. 3 varieties more than that in the second half of 2007, that is pork, beef, mutton, soy bean and bean oil etc. 13 varieties among 300 producer goods will be in shortage, 2 varieties more than that in the second half 2007, such as steam coal, anthracite, coking coal, coke, diesel, gasoline, kerosene and fuel oil etc.

Ms Chen Xiuzhi a senior economist of China Logistics Information Center said that market price of producer goods remained strong at present, and the tense demand and supply relation in domestic market did not change. Therefore, the price of producer goods still kept strong in recently. And this brings more difficulty to restrain inflation and control commodity price soaring.

She also stresses that they should pay much attention to market change, not only should control overheated market development, but also should prevent market cooling. Seeing from the market from January to February, the domestic producer goods price soaring was under control efficiently.