Behind China's big coal shift

摘要

The growth in China's demand for power means that the domestic market for steam coal now takes precedence over exports, even as its tremendous increase in steel production puts China on course to become a net importer of coking coal. These trends have resulted in a sudden and tightening squeeze on international coal supplies, as producers struggle to increase output after years of declining real coal prices and consequent underinvestment in capacity. It was patently clear at the Coaltrans conference in Shanghai earlier this year that customers for coal in Japan, Taiwan, India and even Brazil were desperate for assurances from China on supply.