Beijing, Apr 9 (IANS): Demand for coal in China will drop during the second quarter of the current fiscal year, an expert said.

Supply and demand will continue to be balanced during the quarter, Wang Xianzheng, chairman of the China Coal Industry Association, said Sunday.

Companies should more attention to coal output, slowdown in demand and regulate production to prevent big changes in the market, Wang said at a meeting Sunday.

The nation's coal demand has faltered since the fourth quarter last year as economic growth decelerated amid sluggish global economic recovery and eurozone crisis.

China's coal output reached 838 million tonnes during the first quarter, up 5.8 percent year-on-year, official data showed, Xinhua reported.

Wang said coal prices also retreated during the past few months on waning demand.

The industry should be alert of structural overcapacity, and establish long-term relations with power generation companies and steel plants to promote steady development of the coal economy.