Chinese imports continue to grow

WITH China's domestic coal demand for 2005 estimated to be 2.1 billion tons, tight domestic supplies are continuing to fuel Chinese imports.
Chinese imports continue to grow Chinese imports continue to grow Chinese imports continue to grow Chinese imports continue to grow Chinese imports continue to grow

Courtesy Shenhua Group.

Staff Reporter

Last year, China bought 18.76 million tons of coal from offshore companies during the first three quarters, up 55% on the previous year. Coal exports dipped 25.6% to 54.17 million tons for the same period.

For 2005, coal imports are expected to be 24.2-24.5Mt and to increase slightly next year, according to China Daily.

Domestic production is being limited by China’s infrastructure and the closure of thousands of small coal mines.

A total of 8648 small mines are under production suspension and slated to shut by year end for not meeting safety and quality controls. This move will account for 100Mt of coal output.

Coal consumers in eastern and southern China have turned to coal producers in countries such as Indonesia, Vietnam and Mongolia, where prices are lower, especially for thermal coal and anthracite used for making petrochemicals.

Xinhuanet reported China had plans to build 300Mt of coal production capacity from 2006 to 2010.

China’s 11th Five-Year Program for its coal industry envisages the formation of five to six large-scale coal production enterprises, each producing about 100Mt by 2010.

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