China Sept coal imports set record at 19.1Mt
China’s September coal imports rose 15.3% from the previous month to a record 19.1-million tons, shipping in from as far as Colombia as utilities gear up for domestic supply disruptions, official customs data showed on Monday. Total imports for the first nine months reached 123.43-million tons, with robust imports in September helping reverse yearly decline to a gain of 1.88%.The high imports were in part due to Chinese utilities preparing for a two-week partial shut down of a key Daqin coal railway in mid-Sept, which had caused port stocks to shrink and tightened market supplies.
Weak demand for coal elsewhere in Asia also meant sellers were often willing to meet China’s price expectations, which made imports either cheaper than or on par with local supplies.
Shipments from Australia posted the sharpest increase compared with the previous month, up more than 850,000 tonnes, while imports from South Africa rose by about 600 000 t to 1.77-million tons.
The data also showed China shipped in 471 653 t, or three cape-sized vessels of thermal coal from Colombia, suggesting buyers were lured by attractive price arbitrage opportunities.
Looking ahead, traders said imports would likely fall in the fourth quarter, as ample domestic supplies, rangebound prices and slower economic activity combine to curb appetites for overseas materials.
Although this is traditionally a time for winter restocking, trade sources said Chinese buying had slowed markedly since early October, with many utilities showing sufficient inventory for nearly three weeks of consumption.
China’s net coal imports for the first nine months of 2011 reached 111.31-million tons.
The country’s coal association said last week that net imports would rise 3% to about 150-million tons this year, adding that overall domestic supply and demand was expected to be balanced in the coming winter.
Weak demand for coal elsewhere in Asia also meant sellers were often willing to meet China’s price expectations, which made imports either cheaper than or on par with local supplies.
Shipments from Australia posted the sharpest increase compared with the previous month, up more than 850,000 tonnes, while imports from South Africa rose by about 600 000 t to 1.77-million tons.
The data also showed China shipped in 471 653 t, or three cape-sized vessels of thermal coal from Colombia, suggesting buyers were lured by attractive price arbitrage opportunities.
Looking ahead, traders said imports would likely fall in the fourth quarter, as ample domestic supplies, rangebound prices and slower economic activity combine to curb appetites for overseas materials.
Although this is traditionally a time for winter restocking, trade sources said Chinese buying had slowed markedly since early October, with many utilities showing sufficient inventory for nearly three weeks of consumption.
China’s net coal imports for the first nine months of 2011 reached 111.31-million tons.
The country’s coal association said last week that net imports would rise 3% to about 150-million tons this year, adding that overall domestic supply and demand was expected to be balanced in the coming winter.
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