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Coal, power, oil shortage to ease next year in China



The shortage of coal, power, oil and transport supply will be further alleviated next year, said an official with the National Development and Reform Commission (NDRC) here Monday at a conference on the prospect of China's industry in 2006.

Since this year, the shortage of coal, electricity, oil and transport has been eased to some extent, but some new problems such as oversupply also appeared, said Ma Liqiang, deputy secretary-general of the NDRC.

Due to oversupply, China's steel price has been dropping since April, and the stockpile of coal, coke, non-ferrous metals, household appliances and cars has increased.

In the first nine months this year, the deficit of enterprises that lost money jumped 57.6 percent year on year, and the new deficit enterprises are mostly in the electronics, petrochemicals, power and metallurgy industries.

The energy shortage problem, however, is still serious, and in certain regions, certain seasons and certain periods of time, the power shortage is still severe, said Ma.

In 2006, the oversupply problem in the industrial sectors will continue, and it will be difficult for the manufacturing industry to maintain stable development, he said.

The government will coordinate the supply of coal, power, oil and transport next year, speed up structural adjustment, change the economic growth mode and strive to set up a resource-saving and environment-friendly society, he said.


Source: xinhua