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China's Net Coal Imports Fall 9.7% on Japan Shipments
in-en.com  2007-7-16 14:20:19  

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China's net coal imports fell 9.7 percent last month from May as the world's biggest producer and consumer of the fuel started shipments to Japan after the countries agreed on new term contracts.

China imported a net 280,000 metric tons of coal in June, data from the General Administration of Customs received today shows. That compares with 310,000 tons in May.

After two rounds of failed negotiations, Japan agreed in May to pay 28 percent more for their annual coal supplies from China under 2007 contracts. China turned a net coal importer in January for the first time, contributing to rising global prices.

``Exports may have risen in June after China agreed on the new price for term contracts with Japan and made deliveries,'' Michael Wang, a Shanghai-based coal analyst with KGI Securities Ltd., said by phone today. ``With the summer reaching its peak in July and August, imports are likely to increase.''

The nation exported 3.82 million tons of the fuel last month, an 11 percent increase from May, customs said July 10. Coal Imports reached 4.1 million tons in June, customs data showed today. Imports in May were 3.74 million tons.

``China's coal imports will rise in the second half of the year as demand will peak in the third quarter,'' Zhang Wenxian, a coal analyst with Guotai Junan Securities Hong Kong Ltd., said by phone from Shenzhen today. ``We forecast China's full-year net coal imports at 9 million tons.''

First-Half Imports

In the first half of this year, China's net coal imports reached 3.95 million tons, according to today's data. Imports surged 48 percent to 27.07 million tons from January to June. China exported 28 percent less coal in the same period, shipping 23.12 million tons.

China will export 5 million tons of the fuel to Japanese power generators at $67.9 a ton, the Coal World Web site, which is co-sponsored by the China Council for the Promotion of International Trade and the China Coal Transportation and Distribution Association, said May 30.

China is cutting coal exports from as much as 94 million tons in 2004 to safeguard supplies for domestic power producers and steelmakers, Macquarie Research said in a March 14 report. The country may export 55 million tons this year, down from 63 million in 2006, and 47 million tons in 2008.

Last year, China used 2.4 billion tons of coal and may consume 2.54 billion tons this year, it said.

China's purchases of the fuel jumped 81 percent to 4.7 million tons in January as power producers increased generation. The nation's economy grew 11.1 percent in the first quarter, the fastest pace among the world's largest countries.

Prices of coal at Qinhuangdao, China's largest port for the fuel, rose to 563.38 yuan a ton for the week ended June 29 because of increased use of air conditioners in the summer season, according to the McCloskey Group. The price of coal at Qinhuangdao has risen almost threefold in the past five years.

 


 
Author:Wang Ying and Michele Batchelor  From:Bloomberg  Edit:fenghua
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