SHANGHAI--(BUSINESS WIRE)--China will be a net importer again as it shuts unsafe mines and the economy grows, Fang Junshi, the director general of NEA’s coal department, said in Beijing. Illustratively, China imported over 44.41 million metric tons in the first quarter, 230% greater compared with 2009 Q1.

Regardless of the coal price increase, China is expected to be a long-term buyer of foreign coal. The first reason is strong demand from energy sector. In the first quarter, according to the National Energy Board data, China electricity consumption was 969.5 billion kwh, up 24.2 percent. Secondly, Qinhuangdao coal stocks have reduced below 5 million-metric-tons in April, on average. Thirdly, power generators’ coal stocks level is relatively low. Four major power companies only have four days’ coal reserve on average. As the summer is arriving, power companies will need to increase coal stocks urgently. Last but not least, Li Jing, the Managing Director of JP Morgan, believed that the drought in south China decreased hydro power. Resultantly, China increased imports from Indonesia and Vietnam.

In addition, China’s domestic coal supply is also a problem. The recent national safety check and coal mines integration also worsen the domestic coal supply. The government has issued strict regulations in securing mines safety; this national check will continue in May. Most small coal mines under 3 million-metric-tons were temporarily shut down.

China traders and end-users are very keen on developing import channels. Illustratively, a large number of China coal players have registered for 2010 Coal Trading & Investment Outlook, which is organized by Attention Global and takes place on 22 & 23 July in Guangzhou. A few representative attendees are from Lanyue Energy Group, Nobel Resources, GD Power, and China Century Cement.

The organizer expects to set the platform for overseas coal suppliers and China coal buyers. Business meetings, trading deals, and sharing insights are all themes of the event. The event’s honored delegate, Mr. Lan Wenbin, the General Manager of Lanyue Energy Group, would suggest Guangdong be the strategic coal reserve for China. If this suggestion is accepted by Beijing, it would certainly further boost foreign coal imports.

Positioned as ‘Mapping Global Coal Market’, the event is announcing the China Moment.

Contacts

Attention Global

Andy Wang, +86 21 5291 2716

andy.wang@attention-global.com

www.attention-global.com/coal