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.