The Coal Industry With A High Margin Of Safety

According to today's investment on the "currentcoal to ensure stable operation of power plants is
analysts concerned about the highest industry"still in the future period of time the relationship
statistics found that nearly a week a total of 22between the government an important means of
organizations concerned about the coal industry,regulating coal-fired electricity, coupled with
ranking the degree of rating analysts concernedseasonal demand will fall after the Spring Festival,
about the first seven.the future of coal in general a period of time
Chinese Academy of Sciences Research Centersupply and demand will remain more relaxed
predicted a report issued today said: "China's coalsituation, have some downward pressure on coal
industry will be stabilized in early 2010 to pick up,prices. However, taking into account local township
enter a new round of economic cycle, may occurcoal mines is still an important bargaining chip in
coal production and prices 'price-volume Qi Zhang'regulating the supply of coal, while the cut-off
situation." CAS Forecast Center for Scientificduring the Spring Festival holiday, as well as two
Research of the report predicts that in 2010 thelarge-scale cut-off during the local government will
four coal industry-related downstream industriescontinue to ensure safety and an important
(electric power industry, iron and steel, buildingmeans of regulating the supply in the coal on the
materials, chemicals) climate index are expectedcoal local governments against the backdrop of
to fully restored, continue to drive coal demandgrowing importance, coal prices dropped space will
growth. The report analyzes, in 2010, accountingbe limited. Specifically in terms of Qinhuangdao
for about 50% of the total coal consumption ofPort coal price is expected to heat 6000 kcal
the power industry will continue to pick upmixed FOB Datong will maintain excellent posture
momentum, and continuity. Infrastructuredeclined largely decreased in the range of about
construction by the State to increase the pulling,5% -10%, and will continue until the end of June
iron and steel industry, building materials industrythe coal consumption of off-season . On
will also generally show a rapid growthmaintaining the "Recommended" investment
momentum, increasing coal demand.rating, it is recommended to focus on coking coal
China Merchants Securities [28.53 -2.26%] believedprice increases brought about investment
that due to the concentration rush to transportopportunities.