China 2009 coal output predicted to approach 3 bln tons on booming demand

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Nov 2009

China is expected to produce nearly 3 billion metric tons (tonnes) of coal this year as its coal output has reached 2.4 million tonnes in the January-October period, and November and December are the traditional peak months for coal consumption. Data from the National Development and Reform Commission show that the country's coal output in the first 10 months came to 2.42 billion tonnes, up 11.4 percent over the same period of last year. The output in October jumped 21.1 percent year on year to 273 million tonnes.
Industrial experts point out that the country's apparent coal consumption will likely top 3-3.1 billion tonnes in 2009. Apparent consumption is a combination of output and net imports.
According to statistics from the General Administration of Customs, China exported 18.9 million tonnes of coal in the January to October period, down 50.6 percent year on year, and imported 96.87 million tonnes, soaring 170 percent. Net imports were 77.97 million tonnes, compared with 2.36 million tonnes in the prior year period.
An expert with the China Coal Transportation and Distribution Association said that there was no doubt that the country's coal imports would exceed 100 million tonnes this year, adding that the exports were estimated at about 23 million tonnes. Therefore, the net imports in 2009 are forecasted to reach 87 million tonnes.
The sharp rise of imports this year is mainly due to lower international market prices. As the major producing area of northern Shanxi province has integrated resources and restricted the blind supply of coal, domestic coal prices fell more moderately than on the international market.
Huang Teng, a coal trading expert, noted that winter's coal consumption peak would persistently boost prices on the domestic and international markets before April of next year. Power coal prices at Australia's Newcastle Port rose to 82.25 US dollars/tonne on November 20.
According to Huang's analysis, China's coal imports will drop next year as the price gap between the domestic market and international market narrows.

Source: Chinamining