Coal, Oil and Electric Industries to Experience Slowdown in 2009

China Economic Forecast and Outlook in 2009", a report recently issued by the Center for Forecasting Science under the Chinese Academy of Sciences, which makes supply and demand forecasts for China's coal, oil and electric industries for 2009, predicts that there will be a reduction in demand for China's coal in 2009. In the coal industry, supply will exceed demand, while the price of coal will gradually decrease. The industry prospects will be gloomy.

The report estimates that domestic gasoline prices will remain low in 2009. Gasoline supply and demand will basically maintain a balance, while the oil industry will start to feel slowdown.

The report says that due to the joint effects of various factors, the growth rate of China's power demand in 2009 will dramatically drop. Electricity production capacity will be enhanced while average utilization hours of power generation will continue to decrease, leading to a surplus of electricity. Influenced by insufficient demand from downstream industries, China's electricity prices in 2009 will maintain stable.

By People's Daily Online