China’s coal imports have surged significantly

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China’s coal imports have surged, according to the China Chemical Industry Information Network. \"China’s coal imports have increased significantly since the beginning of this year, and it is expected that these imports will remain high in 2013 as well. The impact of imported coal on China’s domestic market is growing steadily.\" ”Wang Zhanjun, Director of the Economic Operations Department of the China Coal Industry Association and President of the China Coal Transportation and Marketing Association, said this at the 2013 China Coal Market Summit Forum held here recently. 　　In 2009, China changed from a net coal exporter to a net coal importer. Net coal imports have increased year by year from 109 million tons in 2009, and will reach a record high this year. 　　Data from the China Coal Transportation and Marketing Association show that in the first 11 months of this year, China’s cumulative net coal imports amounted to 245 million tons, a 34.9% increase on a year-on-year basis; it is estimated that the annual net coal imports will reach around 270 million tons. In the first three quarters of this year, China mined 2.88 billion tons of coal, an increase of 100 million tons compared to the previous year, representing a growth rate of 3.6%. 　　Qu Jianwu, director of the China (Taiyuan) Coal Trading Center, analyzed that although coal prices in China have declined this year, international coal prices have also continued to fall, resulting in a situation where domestic prices are higher than international prices, which has led to a rapid increase in coal imports. 　　Since the beginning of this year, the Barrow Jones Index, which reflects international coal prices, has dropped from 117.55 dollars per ton at the start of the year to a low of 80.35 dollars per ton, representing a decline of 31.6%. The thermal coal imported by China mainly comes from Indonesia. The CIF price of 4700-kcal thermal coal at Guangzhou Port in the second quarter showed a gap of nearly 70 RMB per ton compared to the CIF price of 4500-kcal mixed coal at Guangzhou Port. 　　In addition, the decline in global coal demand, the increase in supply, and low sea freight rates over the long term are also important factors driving an increase in China’s coal imports. Han Lei, an analyst at the China Coal Market Network, said that global coal demand will remain weak this year due to slow economic growth in Europe and the United States, as well as accelerated shale gas development in the U.S. which reduces coal usage. Meanwhile, the coal supply capacity of countries such as Australia and Indonesia has increased to varying degrees, leading to an increase in coal exports as well. 　　Since the beginning of this year, China’s coal market has bid farewell to its period of rapid growth during the \"golden decade.\" In particular, after May, coal prices dropped sharply, coal inventories increased, and coal companies faced difficulties in operating. Experts believe that, in addition to slowing demand and capacity release, the impact of increased imports of coal is a significant factor. 　　“Imported coal has a clear cost advantage; many large coal consumers purchase coal from abroad directly, which puts pressure on domestic coal prices and has a significant impact on the domestic coal market. ”Han Lei said. 　　A moderate return to coal prices helps alleviate the tensions associated with coal-based power generation. However, if coal prices are too low, coal mines will have insufficient profitability, which will affect investments in safety, environmental management, and improvements in people’s living standards. This is not conducive to the healthy and sustainable development of the coal industry, and downstream industries will also be affected as a result. 　　Experts believe that, due to factors such as the slow recovery of the world economy and the increased coal supply capacity in certain regions, China’s coal imports are expected to remain high in 2013. 　　Wang Zhanjun said that developed economies such as the United States, Europe, and Japan have low economic growth rates, and emerging economies like the BRICS countries are also experiencing a slowdown in growth. The fact that the United States is investing heavily in shale gas to replace coal-fired power plants for electricity generation will inevitably lead to a downturn in the international coal market and a drop in prices. 　　“For four consecutive years, China has seen a significant increase in its coal imports, **which has motivated coal suppliers from Indonesia, Australia, and Russia to boost their production capacity. As a result, the supply of coal in the Asia-Pacific region is also set to increase, with an expected rise of around 7% to 10% next year. ”Wang Songtao, deputy general manager of Shanxi Coal Import and Export Group Company, said.