Half of coal companies in Shanxi lose money

Half of coal companies in Shanxi lose money
According to data released by the Statistics Bureau of Shanxi Province in recent days, from January to February 2014, the main business income of Shanxi Province dropped by more than 8 percentage points year-on-year, which was the first time since 2010.
In 2014, the downward pressure on the industrial economy in Shanxi increased, and industrial efficiency continued to decline. Data show that from January to February, Shanxi's industrial main business income reached 237 billion yuan, a year-on-year drop of 8.3%. During the same period, the province’s industrial loss-making enterprises increased by 13% year-on-year, and the loss reached 47%, ranking second in the country.
Among the loss-making enterprises, Shanxi’s traditional pillar industries, coal, coke, and non-ferrous metals, accounted for a loss of nearly 9 billion yuan, a year-on-year increase of 17%.
In January-February, the coal industry continued to face difficulties in business operations, with a loss of 4 billion yuan. For the first time, the industry ranked first in profits. In the same period, the power industry realized a profit of 2.5 billion yuan, making it the industry's most profitable industry in the province.
According to industry analysts, this is mainly due to a drop in coal prices and transportation costs. In 2014, when the coal coal long-term contract saw the negotiation, the final price of coal was reduced by 40 to 70 yuan per ton. In addition, China Railway Corporation raised the railway freight rate by 1.5 cents/ton kilometre, which significantly increased the cost of Sinopec's coal shipments.

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