Coal news and updates

China coal demand weak

The outlook for thermal coal import demand in China, the world’s largest importer, remains weak, according to rating agency Fitch.
The report attributed the weakness to China’s slowing industrial production, higher hydro-based generation, as well as ongoing implementation of policies aimed at curtailing coal consumption.

China’s proposed import ban aimed at curtailing high ash and sulphur coals could impact Australian and South African coal and potentially benefit cleaner Indonesian coal, according to the report.

Imports to China could also face a greater threat in the medium term, depending on the timing of bans on coal use in some major cities in south and east China, which are among the highest consumers of imported coal, it said.

The Chinese government banned the sale and import of coal with more than 40% ash and 3% sulphur starting 1 September in an effort to improve the air quality in major cities.

China is the world’s largest consumer of coal, accounting for around half of global consumption. Nearly 70% of its energy comes from coal.

In the first eight months of 2014, China imported 202mt, down 5.3% year on year, according to the China Coal Industry Association.
 

Source: TradeWinds