As a big country in coal production and consumption, China was once a net exporter of coal, but this situation was reversed in 2009. In 2009, China's cumulative import of coal was 126 million tons, a year-on-year increase of over 210%; exports of coal were 22.4 million tons, a year-on-year drop of more than 50%; and annual net imports were 103 million tons.
From the perspective of coal varieties, in recent years, imports of anthracite and metallurgical coal have been larger than exports, but thermal coal has always exported more than imports, and because of the large export volume of thermal coal, coal exports have generally been larger than imports. However, thermal coal exports fell by nearly half in 2009, while imports increased by more than 270%, making steam coal imports larger than exports. At the same time, the import volume of metallurgical coal and anthracite also increased significantly, by 411% and 78% year-on-year, respectively, while the export volume decreased significantly year-on-year.
The reasons for the increase in the import volume of thermal coal are well known. Due to poor coal and electricity negotiations, high coal prices, and transportation bottlenecks, many coal-fired power plants, especially southern ones, import coal from foreign countries at a lower cost than domestic ones. At present, the import of coal from southern power plants has continued to increase. In the first four months of this year, Guangdong Province imported 15.28 million tons of coal worth 1.22 billion U.S. dollars, an increase of 150% and 220% year-on-year respectively; Ningbo Port imported 2.299 million tons of coal, worth 220 million U.S. dollars, an increase of 970% and 910% respectively.
The import of anthracite and metallurgical coal is largely due to the rapid increase in production capacity in the metallurgical industry, especially in the steel industry. Driven by investment, China's steel production in 2009 reached 567.8 million tons, an increase of 13.5% year-on-year.
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