Coal prosperity index falls to 10-yr low in Q3

CE Coal Industrial Prosperity Index was 98.0 in the third quarter, dropped 1.4 points compared with that in the last quarter; CE Coal Industrial Warning Index was 66.7, dropped 16.6 points compared with that in the last quarter.

As for the industrial operation, the growth rates of profit composite index, total tax, amount of employment, product sales income and fixed assets investment year-on-year showed drops to different extents. In spite of some stabilizing phenomena in the coal market recently, the foundation for rebounding was not solid and the industry was still faced with the downward pressure.

Prosperity index dropped by 1.4 points

CE Coal Industrial Prosperity Index was 98.0 in the third quarter of 2012, dropped 1.4 points compared with that in the last quarter, which had been the new bottom since the third quarter of 2000.

Warning index dropped by 16.6 points

CE Coal Industrial Warning Index was 66.7 in the third quarter, dropped 16.6 points compared with that in the last quarter. The growth rate of raw coal output increased year on year.

On the basis of initial seasonal adjustment, the raw coal output in the coal industry increased by 20.3 percent in the third quarter year on year, 1.3 percentage points higher than that in the last quarter.

Sales income showed a negative increase year on year.

On the basis of initial seasonal adjustment, the product sales income in the coal industry was RMB 669.53 billion yuan in the third quarter, dropping by 0.6 percent year-on-year. It changed from the increasing year-on-year in the last quarter (18.3 percent) to the dropping year on year in the third quarter.

Sales income is mainly determined by two factors of demand and price, which are interacted. Accelerated drop of sales income is mainly due to the weak demand for coal in the downstream industries like electricity, steel and cement; in addition, there is price inversion for the exported coal, which has some effect on the domestic market.

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