China is
now the world’s second largest steam coal importer, accounting for 13.7% of
seaborne imports in 2010. Thus, any changes in China’s import volumes will have
a major impact on the global seaborne steam coal trade. China coal imports have grown
greatly in recent years, up from 39.2mt in 2008 to 167.7mt in 2010, with the
result that China became a net coal importer in 2009.
In January 2010, the price of Indonesian steam coal (spot price +
freight) was $39 per tonne cheaper than the Chinese domestic price (spot price
+ coastal freight) in south China. As a result, China imported an average of
9.0mt per month in Q1 2010, compared to just 1.2mt in the same period of 2009.
However, during the first quarter of 2011, a reduced
average of 5.4mt of coal was imported by China. This reflects a higher global
coal price (up to $139 per tonne), which made domestic coal a more
cost-effective option.
Other Factors , Since April this year, Chinese domestic
steam coal prices have risen and now exceed international prices. Thus, Chinese
imports reached 12.0mt in September, the largest volume on record.
Source:coalspot
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