In a report published on March 29, China's National Development and Reform Commission stated that economic development has boosted demand in the domestic coal market. In March, coal consumption by power plants in China has increased and coal prices have risen. In future some areas in the country could face coal shortages, the NDRC stated.
As of March 24, the average price of 5,500 Kcal/kg thermal coal in China was RMB 770-780/mt, up RMB 5/mt month on month.
In the January-February period of the current year, Chinese raw coal output totaled 516 million mt, up 13.5 percent year on year, while the total domestic sales volume was 497 million mt, up 7.1 percent year on year. The NDRC indicated that domestic coal demand has rebounded as outputs of thermal power, crude steel and cement have increased in China.
Influenced by rising international coal prices, in February this year China imported 6.76 million mt of coal, down 47.6 percent year on year.
The NDRC stated that the drop in coal imports in February was caused by the Australian floods, which led to a global shortage in coal supplies.