China Steel Industry Growth Leading to Increased Demand for Coking Coal Exceeds 30 Million Tons This Year

Bloomberg reported that coking coal imports by China will exceed 30 million tonnes this year as domestic supplies can’t keep pace with demand from mills.

Mr Don Lindsay CEO of Teck said at a conference in Singapore that Chinese demand for the steelmaking ingredient surpassed expectations last year and steel output will continue to rise.

Mr Lindsay said that China is hungry for commodities on an unprecedented scale. Domestic supply of high quality coking coal required will not be able to keep pace with steel production growth. He said that Teck Resources wants to boost coking coal output by 50% within 5 years.

Chinese coking coal imports surged fivefold last year after the government closed smaller unsafe mines. BHP Billiton Limited this year won 55% price increase from JFE Holdings Inc as the global economy picks up and Chinese purchases bolstered demand.

sourced : bloomberg