China is expected to have balanced coal supply and demand in 2006, with the total demand for coal predicted to reach 2.25 billion tons and a production capacity of over 2.26 billion tons, according to official forecast.

"The coal supply and demand would be basically level in 2006, and the transportation bottleneck would be eased," said Ou Xinqian, deputy director of the National Development and Reform Commission at a recent national meeting on coal production and transportation held in Jinan.

Of the total, there will be 2.17 billion tons for the domestic market and 80 million tons for export.

Statistics of the commission show that the country's total coal output increased by 8 percent year-on-year in 2005. China's coal production capacity reached 2.26 billion tons by last April, and has been increasing.

The production capacity expanded by at least 60 million tons in 2005, said Ou.

"An all-round analysis suggests that coal supply and demand would stay in balance. No general supply shortage nor oversupply is expected in near future," said the official.

"However," he said, "we can not rule out the possibility that certain regions at certain time may experience short supply or overstock of coal."

Source: Xinhua