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Monday, 17 August 09
COAL IMPORTS SURGE IN H1


China is one of the world's leading coal producers. But even so, imports of coal have surged in the first half of the year, hitting a record in June. CCTV reporter tells us how this is putting pressure on the domestic industry.

At Guangzhou's port, workers are busy unloading imported coal, while many other ships wait in queue.

Guangzhou Port Worker said "The imported coal comes from Indonesia, Vietnam, and Australia. Imports have increased significantly since April, and have broken records since May."

Other major Chinese ports are also seeing surging coal imports. The coal producing province of Shanxi is seeing its effects.
Qu Sen, GM of Coal Department of Tianjin Jun'an Coal & Coke Chemical Co. said "Shanxi province was always exporting coal through Tianjin's port. But this year, the port is supplying coal to Shanxi. "

Industry insiders say surging imports will add pressure to the domestic coal industry.

Jiang Zhimin, Deputy Chairman of China National Coal Association said "Rising imports will squeeze the domestic market. With increasing output in the domestic coal industry, supply will exceed demand. Domestic coal enterprises will face some operational difficulties. They may suffer losses, lay offs or salary cuts. This will affect employment in the whole industry."

Statistics from the Ministry of Industry and Information Technology show coal net imports reached 36.6 million tons in the first half of the year. Net imports in June set a monthly record of 16 million tons.
Source:
CCTV



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