2010Q1 Research Report on China Coal Industry

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168Report­China Market Research Reports

2010Q1 Research Report on China Coal Industry Hard copy :899 USD Electronic copy (PDF) :899 USD Hard and Electronic copy : 1299 USD Pages: 28 Tables and figures : Published date : Mar, 2010 Publisher: 168Report Contact: Mr. Peter Lee +86­10­82965190 +86­13161572746 sales@168report.com

Summary The coal price fluctuates to some extent every January and February due to seasonal factors, but the fluctuation in 2010 as yet is sharper than the past years. The coal price increased considerably month­on­month in Jan, 2010, with average growth margin of 6%, while it started to fall sharply 15% in February, the biggest drop since 2005. Such sharp fluctuation in coal price in 2010 resulted mainly from the followings, i.e. the impact of coal resource integration in such provinces as Shanxi and Henan etc on coal supply; and significant increase in coal consumption caused by temperature drop across China in Jan., 2010, as well as February and March are the off­season for coal consumption as weather turns warm. China’s Coal Output and Growth Rate, 2005­2010 (10 thousand tons)

Source: Wind;

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168Report­China Market Research Reports

It is forecasted that the price of steam coal will touch the bottom and rebound in late Apr, 2010. As the energy­consuming industries enter production season after May, the demand for electric power will grow steadily, driving steam coal demand and price to rise. The sharp growth in housing construction area and new building constructed area will greatly promote the development of real estate–steel­coking coal chain in 2010. Coal output, as is predicted, will increase 12­18% yr­on­yr in 2010, and the effective supply will fall short of effective demand considering imbalanced structure of coal variety supply and demand as well as traffic bottleneck in the regions where the new output is added.

Table of Content: 1 Industry Overview 1.1 Supply & Demand 1.2 Influence of Supply & Demand on Price 2 Steam Coal Supply & Demand 2.1 Influencing Factors 2.1.1 Spring Drought 2.1.2 Increase in Foreign Coal Price 2.1.3 Coal Transportation 2.2 Supply & Demand 3 Coking Coal Supply & Demand 3.1 Demand 3.2 Supply & Demand Analysis 4 Key Companies 4.1 Shenhua Group Corporation Limited 4.1.1 Coal Business 4.1.2 Coal Transport Network 4.1.3 Electric Power Business 4.2 Kailuan Group 4.2.1 Coal Industry 4.2.2 Coal Chemicals 4.2.3 Corporate Planning 4.3 Yanzhou Coal Mining Company Limited 4.3.1Coal Business 4.3.2 Methanol Business 4.4 Shanxi Xishan Coal and Electricity Power Co., Ltd 4.5 Taiyuan Coal Gasification Company Limited 4.5.1 Coal Resources 168Report Mr.Peter Lee sales@168report.com 13161572746 8610­82965190

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168Report­China Market Research Reports

4.5.2 Coal­Coking Integration 5 Characteristics of Industry Development & Investment Opportunity 5.1 Development Characteristics 5.2 Investment Opportunity

Tables and Figures: China’s Coal Output and Growth Rate, 2005­2010 Coal Output in Shanxi Province and Inner Mongolia, 2007­2010 Coal Stock of Direct Power Supply Plants in China, 2007­2010 Daily Coal Consumption in China by Month, 2006­2009 Growth Rate of Hydraulic Power Generation in China, 1999­2010 Daily Coal Consumption of Direct Power Supply Plants, 2007­2010 China’s Coal Import Volume by Month, 2007­2010 Cumulative Y­o­Y Growth of New Housing Constructed Area, 2000­2010 China’s Daily Output of Crude Steel, 2008­2009 China’s Coking Coal Reserves and Ratio Growth Rate of China’s Coking Coal Output and Total Output, 2003­2008 Revenue Growth of Shenhua Group, 2005­2009 Profitability of Shenhua Group, 2005­2009 Crude Coal Output and Sales Volume of Shenhua Group, 2007­2009 Coal Selling Price of Shenhua Group, 2006­2009 Annual Output Forecast of Kailuan Group’s Main Coal Mines, 2010E­2011E Approved Output Capacity and Proven Reserves of Yanzhou Coal Mining’s Six Mines in Mainland China Crude Coal Output of Yanzhou Coal Mining Company Limited in Mainland China, 1999­2008 Revenue Growth of Shanxi Xishan Coal and Electricity Power Co., Ltd, 2003­2009 Profit Structure of Shanxi Xishan Coal and Electricity Power Co., Ltd, 2009 Electric Power Assets of Shanxi Xishan Coal and Electricity Power Co., Ltd, 2009 Output Capacity and Available Reserves of Coal Mines under Production and Construction of Taiyuan Coal Gasification Company Limited, 2009

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