As outlined in a statement issued by
China's Ministry of Industry and Information Technology (MIIT), in 2009 and 2010
China's imported
coking coal volumes increased sharply, reaching 34.4 million mt and 47.27 million mt respectively, and accounting for seven percent and eight percent respectively of total domestic
coking coal consumption. Accordingly,
China has became a net importer of
coking coal from a net exporter of the product.
The MIIT went on to say that in 2011, because of the floods in Australia, the leading international exporter of
coking coal, and due to the continuous recovery of the world's iron and steel industry, a situation of insufficient supply and increased demand has developed, with
coking coal prices thus continuing to rise. Currently, the spot price of
coking coal in the international market has exceeded the historical record of $300/mt; meanwhile, the average price of second grade metallurgical coke in
China's domestic market is RMB 2,050/mt, up by RMB 155/mt compared with the price in January.
The MIIT stated that domestic
coking coal resources are almost able to meet the needs of
China's iron and steel industry, though resources of high-quality
coking coal are insufficient. The MIIT concluded by stating that Chinese steel enterprises should focus on increasing their self-sufficiency in
coking coal supplies.