China’s Coal Imports Hit New High


Chinese coal imports for the first quarter of 2007 exceeded exports for the first time. Fuelled by a need to power its robust economy, the world’s largest coal producer is expected to import more and more coal in the near future. China might see a rise in prices within the next two years despite them rising sharply last year. The country imported 14.3 million metric tons (mt) of coal in the first three months of this year, a year-on-year rise of 60.4%. It exported 11.42 million mt, a 32% drop from last year. The current price, about 500 yuan ($64) per mt, has already reached a peak after a 15% rise last year, but imported coal costs about $63/mt.

Experts said the government’s latest policies aimed at regulating the accidentplagued coal industry and protecting domestic energy resources have tipped the previously abundant coal market. The country has streamlined its coal mining industry since last year by closing thousands of small-scale mines. As a result, there will be total production loss of 380 million mt through 2010.