Chinese demand surges for NSW coal

CHINESE demand accounted for 19.9% of New South Wales coal exports in the recent financial year, compared to a paltry 1.1% share in 2007-08.

Blair Price

Other data by Coal Services revealed that the state’s level of exports to China increased more than 30% in the last financial year to almost 31 million tonnes.

China has become the NSW’s second-biggest coal exporting market, with Japan taking the lion’s share of 46% of the state’s exports, while South Korea buys 16% and Taiwan takes 9.7%.

There was growth across the Asian markets with Coal Services’ sums suggest that Japan imported 12% more of the state’s coal in the last financial year while South Korean demand rose 19.6% and Taiwanese demand climbed 6.5%.

“NSW coal mining has had a tough 18 months with a high Australian dollar, a fall in the coal price and uncertainty with regard to NSW planning laws,” NSW Minerals Council CEO, Stephen Galilee said.

“Finally, there is some good news, with demand for NSW coal rising significantly in China, contrary to some of the rhetoric we have been hearing that demand for coal is diminishing.

“Importantly, given coal is our state’s most valuable export commodity, the data also shows that demand for NSW coal is growing steadily across all our main export markets.”