Steady Increase In The Coal Import To China

According to energy sector experts in China, the country has become a leading importer of coal, owing to its high-energy consumption.

China becomes the leading importer of coal in the world because of its high-energy consumption.

General Administration of Customs revealed statistics showing that 4.7 million tons of coal was imported by China in the month of January, whereas there was a fall of 20.4% in the coal exportation in January. This shows a rise in coal imports by China making it to be a net coal importer for the very first time.

Statistics indicates that coal import rates from Indonesia are growing at a faster pace. It is said that China imported 1.16 million tons of coal from Indonesia in the month of January. This is six times greater than the amount imported in the previous year. Southeast China is the region that imports more coal. This imported coal is usually of good quality. Though the quantity is not large, there is no compromise in quality.

The increase in imports is due to the rise in the consumption by industries like cement, and also because of the need to shun away the transport disorder from the inland mines to the customers.

China is the top producer and consumer of coal in the world. It derives more than 70% of its electricity from coal. Thus, coal is the main energy source for the country and this resulted in the growth of the demand for coal. However, there were signs, which showed that coal-mining capacity of the country is slowed down because of natural limits. Incidents of coal mining accidents like the one which occurred in Datong, Shanxi province, indicate that the current facilities are not adequate to maintain safe production levels. Information from the customs reveals that the major importers of coal are the provinces which are developed economically. These provinces are along the eastern coastal region like Zhejiang and Guangdong. With the fast economic growth of these provinces, there was an increase in the demand for electricity and thus, an increased demand for coal.

Research analyst at RNCOS says, the scenario of energy demand in China shows that the coal consumption in the country will continue to increase, as coal is the main raw material to generator electricity. Chinese are well aware of the harms of burning coal, but they don’t seem to have any choice if they want to maintain the economic growth.

Related Market Research Reports:
Indian Coal Industry Outlook till 2012
China Energy Sector Analysis
Russian Oil and Gas Industry Analysis