
Chinese status as No 1 global coal importer
2010-06-01 20:11:20China enormous hunger for coal to feed its surging power consumption and steel production may see it become the world top coal importer in 2010 and accelerate the shift of coal flows from the Atlantic basin.
China coal imports in 2009 jumped a staggering 212% from a year ago to 125.8 million tonnes prompting some analysts and exporters to forecast imports could easily grow some 30% this year to reach 170 million tonnes overtaking Japan status as the world largest coal buyer.
Earlier this month, Barclays Capital said it is forecasting China steam coal imports alone to grow by 15% to 94 million tonnes this year, a number which it said already appeared conservative as the number requires economic growth to slow into negative territory for the rest of the year.
The growth in China coal demand, combined with India rising import needs, demand recovery in other parts of Asia and infrastructure constraints faced by Asia key exporters, means buyers will increasingly need to tap further markets including South Africa, Colombia, Russia and the United States for fresh supplies.
Two major Indonesian coal producers said they have already contracted large volumes to Chinese buyers in the second half, and have little stock available for spot demand coming in from South Korea.
Singapore based trader said "Chinese buyers have been so aggressive in the Indonesian market to the extent that it has become quite difficult to get sub bituminous coal material on a spot basis."Coal imports from China, the world top coal producer and consumer, fell 11% in April to 13.5 million tonnes but total net coal imports in just the first four months have already reached 50 million tonnes or an annualized 154 million tonnes.
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