Foundry Informatics Center, New Delhi

Home »News and Events

China's coal import may boost coking coal prices

According to forecasts by some analysts, the prices of coking coal are expected to shoot up as China becomes a net importer of coal for the first time in its history. China consumed about 2.4 billion tonnes of coal in 2006 and was second biggest exporter of coal in the world after Australia Recent data shows that China imported 14.4 million tonnes of coal in the first quarter of 2007 a 60 %increase YoY with a fall of 32 % for coal exports to 11.5 million tonnes over the same period. According to reports from the China Daily 84.1% of Chinese coal imports come from Association of South East Asian Nations members and Australia.

Citi group analysts have predicted that the spot benchmark price for hard coking coal will be USD 95 a tonne in 2008 before rising to USD 110 a tonne the following year.

Thermal coal was forecast to fall to USD 48.50 a tonne in 2008 from the USD 50.25 a tonne in 2007 and fall even further to USD 45.75 a tonne in 2009 whereas JP Morgan has forecast a 9.3% rise for thermal coal to USD 54 a tonne from April 1^st 2008. It has also predicted thermal coal prices will slip to USD 46.9 a tonne in 2009.

« Back