Latest news with #ChinaCoalTransportationandDistributionAssociation
Business Times
2 days ago
- Business
- Business Times
China likely to ditch low-grade coal from Indonesia due to glut
CHINA is likely to cut imports of the lowest grades of coal as a glut of the fuel makes the trade uneconomic and the government tightens up on carbon emissions. It's a move that would weigh most heavily on suppliers in Indonesia. China's benchmark price of thermal coal has slumped to a four-year low, a product of record domestic production and a binge on imports in recent years. Power demand hasn't kept up as the economy has slowed, while renewables are shouldering more of the burden of electricity generation. Coal imports fell year-on-year for a third straight month in May, and the decline is likely to accelerate over the rest of 2025, Li Xuegang, an analyst at the China Coal Transportation and Distribution Association, said on Wednesday. The government's 'tighter emission controls will slash demand for low-heating and poor-quality grades,' Li told industry representatives at the annual Coaltrans event in Beijing. Over the past three years, China has stepped up imports of lignite, or brown coal, from its biggest overseas provider Indonesia, blending the lower calorie and heavily polluting fuel with higher grades for use in power stations. That trade has come unstuck as prices have dropped and utilities are able to source better-quality supplies more cheaply. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up The shift away from the worst kind of coal would also represent progress at the margins for the country's ambitions to reduce emissions to meet its climate goals. China Huadian, one of the country's biggest power generators, expects total imports to slide to about 400 million tons this year, from the record 543 million tons purchased in 2024, according to Zhang Aipei, deputy director of production. Purer, high-calorie grades should be enough to fill any seasonal or regional gaps in supply, he told the Coaltrans conference. Coal demand more generally is holding up, however, putting the government's pledge to start reducing consumption from next year in doubt. Having endured a spate of economy-crippling blackouts earlier this decade, China has greenlit a massive expansion of coal-fired power capacity to lock-in security of supply. Moreover, electricity consumption is likely to get a boost from the rollout of data centres, and the expansion of green and high-tech manufacturing, while coal is also finding other outlets for demand from the chemicals sector, according to other speakers at the conference. Domestic production, which topped 4.7 billion tons last year, is China's main source of supply. Huadian's Zhang said he doesn't expect that to peak until 2027. BLOOMBERG
Business Recorder
3 days ago
- Business
- Business Recorder
China coal imports could drop by up to 100 million tons in 2025, industry group says
BEIJING: China's coal imports could drop by up to 100 million metric tons in 2025, an official at a major industry group said, potentially putting global benchmark prices - already at multi-year lows - under more pressure. Imports by the world's largest consumer, importer and producer of the fossil fuel rose to a record high of 542.7 million metric tons in 2024, as lower international coal prices spurred buyers to substitute imports for domestic supply. But imports of the polluting fuel could fall by 50 million to 100 million tons in 2025, Xuegang Li, vice president at China Coal Transportation and Distribution Association, told the Coaltrans China conference on Wednesday. Imports were 8% lower in the five months to the end of May, official data showed. A decline of 100 million tons this year would amount to a drop of 18.4% annually. Li did not give an indication of how much he expected imports of thermal coal and metallurgical coal to fall. Thermal coal is mainly used in power generation, while metallurgical coal is used in steelmaking processes. China's coal imports from Russia drop amid shift to domestic coal Rising renewable output has helped China progressively cut dependence on thermal coal, which accounts for the bulk of coal consumption in the world's second largest economy. China's total coal consumption could peak by 2027 or 2028, Li said, adding that the time period of near-peak consumption levels would be spread out over three to five years.
Bloomberg
15-05-2025
- Business
- Bloomberg
China's Glut of Coal Locks Market in Vicious Cycle of Decline
Chinese coal prices remain locked in a downward spiral due to a persistent glut of the fuel, according to the country's top industry group. The optimism that's taken hold in the wake of China's trade truce with the US doesn't extend to the market for power fuels, with utilities reluctant to buy while inventories are full and prices are falling, said the China Coal Transportation and Distribution Association.
Yahoo
27-03-2025
- Business
- Yahoo
China's Coal Price May Extend Slump as High Stockpiles Weigh
(Bloomberg) -- Coal prices in China may extend declines from a four-year low as high inventories continue to cast a shadow over the market. They Built a Secret Apartment in a Mall. Now the Mall Is Dying. Why Did the Government Declare War on My Adorable Tiny Truck? How SUVs Are Making Traffic Worse Trump Slashed International Aid. Geneva Is Feeling the Impact. Affordable Housing Developers Stalled by Blocked Federal Funds Stockpiles at major transportation hubs are near record-high levels, and more than a third higher than at the same time last year, according to the China Coal Transportation and Distribution Association. That threatens to further erode prices after a drop of more than a fifth in the past year. 'There's no bright spot, prices may test new lows in coming months,' Xu Dongkun, a CCTD analyst, said at a briefing on Wednesday. Aggressive buying from China and other Asian importers in the fall and lower consumption have left stockpiles high around the region at the onset of spring, forcing miners to slash prices to find interest. Power generation from fossil fuel plants fell in January and February, just the third drop for the winter period in the past 35 years. Spot prices have yet to bottom out, Morgan Stanley analysts including Sara Chan said this week. Most Chinese miners could see losses if they fall below 400 yuan a ton, Bloomberg Intelligence said Thursday. That is about 40% below current levels. State-owned giant China Shenhua Energy Co., China's largest coal producer, this week reported a drop in profit and said it slashed its coal division budget and halted spot foreign coal purchases due to high inventories. Smaller miners are even more affected — with companies in key producing region Shanxi cutting salaries, downsizing or even shutting, according to industry news outlet Thermal Coal Group. Business Schools Are Back Google Is Searching for an Answer to ChatGPT The Richest Americans Kept the Economy Booming. What Happens When They Stop Spending? A New 'China Shock' Is Destroying Jobs Around the World How TD Became America's Most Convenient Bank for Money Launderers ©2025 Bloomberg L.P.
