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Story : China-Coal Overstock
File ID : 147848
Video ID : 1655929
Dateline : July 8/9/10, 2012
Duration : 3'35
Locations : China
Type : Chinese/Nats
Source : China Central Television (CCTV)
Restrictions : Not access Chinese mainland
Pageview : 233
Summary : Coal overstock begins to ease at north China port
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Shotlist

Qinhuangdao City, Hebei Province, N China - July 8, 2012
1. Various of coal stockpiled at port
2. Various of train carrying coal into port
3. Zoom in of machinery unloading coal
4. Various of port staff at work
5. SOUNDBITE (Chinese) Wang Lubiao, deputy general manager of Qinhuangdao Port Co., Ltd:
"I have been here as port manager for ten years, and during this period I have never seen this kind of overstock. The overstock will greatly affect the railway transport as well as port transport, handling and production at the port, which means all links will be oversupplied."
6. Various of machinery loading coal onto ship

Xianyang, Sha'anxi Province, NW China - July 10, 2012
7. Mid exterior of office building of Dafosi Coal Mining Corporation
8. Mid of big screen showing production information
9. Pan right of graphic indicating coal bunkers inventory
10. SOUNDBITE (Chinese) Chen Genma, general manager of the Dafosi Coal Mine:
"We are also perplexed at the excessive coal stockpiling at the Qinhuangdao Port, and we do not know what to do next."
11. Various of coal mining facility
12. Tilt up of halted production line due to excessive coal stockpiling
13. Various of trucks loaded with coal
14. SOUNDBITE (Chinese) Wang Shanqun, coal delivery driver:
"Previously, we were able to deliver 25 truckloads of coal per month. But now, we deliver 10 truckloads less than before, earning around 10,000 yuan (1,570 US dollars) a month less than before."
15. Close of trucks loaded with coal leaving coal processing plant

Qinhuangdao City, Hebei Province, N China - July 9, 2012
16. Various of meeting at 2nd Qinhuangdao Coal Trading Fair
17. Mid of participants launching service platforms
18. SOUNDBITE (Chinese) Miao Ziyi, chief of Service Industry Division at Hebei Development and Reform Commission:
"The platforms are expected to facilitate annual transaction of 50 million tons of coal worth 40 billion yuan (6 billion US dollars)."
19. Mid of board reading (Chinese): Qinhuangdao Shipped Coal Trading Market
20. Zoom out of staff members at work
21. Mid of computer screen showing coal trading information including volume, prices
22. Close of computer screen showing coal trading information including volume, prices
23. Mid of big screen showing coal trading information

Storyline

The excessive coal stockpiling at the north China port Qinhuangdao has begun to ease, though only marginally, owing to the emergency measures taken.

Qinhuangdao is a major hub for shipping coal produced in north China to the southern parts of the country. It is also the largest coal distribution center in the world.

The port has been beset by serious coal oversupply, which reached a record sum of 9.48 million tons in June. By July 7, its coal stockpile totaled 8.55 million tons, still above the 8-million-ton alert level.

The port has thus set in motion four major service platforms: the spot coal trading platform, the platform linking production with transport and demand, the online financing platform, and the coal shipping price index, all in a bid to alleviate the overstock.

"The platforms are expected to facilitate annual transaction of 50 million tons of coal worth 40 billion yuan (6 billion U.S. dollars)," said Miao Ziyi, chief of Service Industry Division at Hebei Development and Reform Commission.

A total of 200,000 tons of coal have been traded over the past two days since the platform's launch on Monday, said Li Genhai, deputy general manager of the Qinhuangdao Shipped Coal Trading Market.

At present, the coal stockpile at the Qinhuangdao Port has dropped to a little over 8 million tons. On Monday, a total of 702,000 tons were shipped out while 511,000 tons were hauled in by train, which was the first time the outbound volume exceeded the inbound amount in recent months.

According to the Command and Distribution Center of the Qinhuangdao Port, the port has witnessed around five million tons of stock in late April piling up rapidly before it hit the record volume in June.

"I have been here as port manager for ten years, and during this period I have never seen this kind of overstock. The overstock will greatly affect the railway transport as well as port transport, handling and production at the port, which means all links will be oversupplied," said Wang Lubiao, deputy general manager of Qinhuangdao Port Co., Ltd.

In addition, the coal stockpile at ports around northern China's Bohai Sea - the largest coal transfer base in China - remains at the record level, with a total storage of 20 million tons in July 7.

As a result, many coal-producing enterprises and transit yards have also been troubled by excessive stockpiling.

The Dafosi Coal Mining Corporation in Xianyang City, China's Shaanxi Province invested over four million yuan (630,000 US dollars) to build two new coal bunkers to accommodate excessive stock.

"We are also perplexed at the excessive coal stockpiling at the Qinhuangdao Port, and we do not know what to do next," said Chen Genma, general manager of the Dafosi Coal Mine.

Many drivers engaged in coal delivery have also seen a slowdown in business in recent days.

"Previously, we were able to deliver 25 truckloads of coal per month. But now, we deliver 10 truckloads less than before, earning around 10,000 yuan (1,570 US dollars) a month less than before," said Wang Shanqun, a coal delivery driver.

Industry insiders say that the slowdown in domestic economic growth reduced demand for thermal coal in China, which was caused by overcapacity in the coal's downstream industries, including steel, cement, electricity and real estate industries.

"The reason why lots of coal is stuck in the intermediate links is that the upstream supply is not decreasing and the downstream demand is not increasing," said Wang Lubiao.

China imported 86.55 million tons of coal in the first four months this year, up nearly 70 percent year-on-year.

"The increase of imported coal affected the price of domestic coal, as well as the domestic coal market," said Song Xinting, vice president of the Coal Transportation and Distribution Association of Hebei province.

According to statistics from the National Energy Administration, China's power consumption in the first five months of this year was 1.96 trillion kilowatt hours, up 5.8 percent year-on-year, however, the growth rate fell 6.2 percentage points compared to the same period last year.

As the southern parts of China saw plenty of rainfall this year, hydropower generation output has increased. Meanwhile, in the eastern areas of China, natural gas has been used for generating electricity this year, another factor trimming thermal coal demand, Song added.

 

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