Thursday, November 19, 2009

China Steel To Maintain Australia Coal Imports

Zhong Yuemin, executive vice president from China Steel Co.(CSC) claimed on November 17 that the company’s 75% of coal demand would be imported from Australia.

He also said that CSC still hoped to achieve the diversity of the coal resource, however, in view of issues such as shipping cost, supply stability and port facilities, coupled with the port congestion in Queensland of Australia, the company will continue to maintain the aforesaid ratio.

According to the annual report from CSC, the imports of the company’s steel-making coking coal reduced by 5.1% to 8.1mln tons in 2008 from that in 2007. Although the data has not been announced in 2009, Zhong Yuemin stated that coking coal imports may keep the same level in 2009 as 2008.

He also said that CSC’ s 77.4% and 15% of coal demand imported from Australia and Canada correspondingly and 90% of coal purchased though long-term contract.

CSC has four blast furnaces into operation, with a total capacity of 10mln tons annually.

Dragon Steel Corporation, the company’s wholly-own subsidiary is building two 2.5mln tons of blast furnaces, one of which is estimated to put into production in February of 2010.

Zhong Yuemin pointed out, CSC has started to build coal inventory for the aforesaid blast furnaces, and planned to use coking coal furnaces by the end of this month to supply steel-making blast furnaces coal.

However, the coal imports of CSC will not rise sharply, as the company will suspend its No.1 blast furnace for six-month maintenance from the January of 2010, with 1.9mln tons annual capacity.

He added that if all things go well, the company’s coal imports may rise in H2 of 2010.

Calculated by revenue, CSC is the largest steel manufacturing enterprise in Taiwan.

Source: Alibaba

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