Tuesday, January 19, 2010

China Coal Imports 'Hit New Record' In December

Reuters has quoted sources in China that say coal imports leapt to a monthly record of 16.38 million tonnes in December up by 29.5% from November.

One industry source who had seen figures from China customs office, which are not due to be published until Thursday said "December imports were 16.38 million tonnes."

The previous monthly high was 16.073 million tonnes imported in June. Shipments to China, the world's top producer of coal, surged last year after output in Shanxi, its top coal mining province, slowed and demand in other parts of the world fell.

The imports surge was also partly caused by demand for coking coal from China's steelmakers who ramped up production to unprecedented levels in 2009.

It was not clear how much of December's record imports were coking coal, but China has suffered unexpectedly cold weather in the last two months that has strained power supplies and pushed power generators' coal stocks dangerously low.

Mr Lu PIng an analyst at China Merchants Securities said "The high imports were a result of insufficient supply in the domestic market. January is likely another month of high imports. He said that high imports will probably stay at lofty levels until March."

Source: Steel Guru/Reuters

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