China’s imports of coking coal from all origins in April rose by 21.7% on month and by 29.4% on year to reach 10.95 million tonnes (mnt), with the volume second only to the historical high of 11.46 mnt recorded in December last year, according to new data released by the country’s General Administration of Customs (GACC).
The traditional peak season for steel demand over March-April kicked off on a weak note this year, as end users showed little buying interest in steel until April. As a result, Chinese mills only started to lift their steel production last month, which led to a parallel recovery in their demand for coking coal after a dull March, market sources observed.
However, strict safety inspections of coal mines by local authorities in North China’s Shanxi province, the country’s top coal-producing hub, continued to take a toll on China’s overall coking coal output last month. In February, the Shanxi government had launched a safety blitz on local mine operations to curb overproduction and reduce mine accidents, as reported.
The swelling demand for coking coal from Chinese steel producers, compounded by subdued domestic supplies, pushed China to import a massive amount of the steel-making material last month, Mysteel Global noted.
In April, China’s coking coal import market was still dominated by Mongolia and Russia, its top two suppliers of the commodity. Imports from Mongolia reached 5.44 mnt, up by 7.4% on month and growing by 32% on year, while Russia-origin supplies were higher by 19.1% on month at 3.05 mnt, also marking a 14.7% rise from the previous year, the GACC data indicated.
The same month, Canada took third place with robust growth in its coking coal shipments to China. Total imports from that country surged by 130.3% on year to reach 913,680 tonnes (t), which was also a twofold jump from Canadian deliveries in March, the same data showed.
Significantly, China’s intake of Australian coking coal remains on a roller coaster ride. The volume spiked by 573.7% on month to reach 786,000 t in April after languishing for the two months prior (down by 69% m-o-m in March and by 68% in February), yet the April tonnage was still lower than the substantial 1.18 mnt imported in January, Mysteel Global noted.
During January-April, China’s total imports of coking coal reached 37.84 mnt, marking a rise of 23.1% from the first four months of last year, according to GACC data.
Note: This article has been written in accordance with an article exchange agreement between MySteel Global and BigMint.