China’s coal industry to weaken further: Fitch

摘要

The financial health of China’s coal industry is likely to weaken further over the next two years amid structural weakness in demand and overcapacity, according to ratings agency Fitch. The Chinese coal sector will have up to 3.3bn t of excess capacity within the next two years, versus declining annual consumption of less than 4bn t for the past two years, the ratings agency said. Its calculations of fixed asset investments in the sector indicate there was 1.4bn t of existing idle capacity at the end of 2014, plus up to another 1.9bn t of capacity under construction.