China’s coking coal imports are likely to exceed 30 million metric tons this year as domestic supplies struggle to keep pace with demand from steel mills, Bloomberg reported. Don Lindsay, CEO of Teck Resources (TCK.TSX, TCK.NYSE), the world’s second-largest seaborne shipper of coking coal, said that demand surpassed expectations last year and steel output will continue to rise. “China is hungry for commodities on an unprecedented scale,” said Lindsay. “Domestic supply of high-quality coking coal required will not be able to keep pace with steel production growth.” Teck plans to increase coking coal output by 50% within five years. China’s imports of coking coal reached 34.4 million tons in 2009, up from 6.85 million tons in 2008, according to Wu Xinchun, a consultant to the China Iron & Steel Association. The spike in imports was tied to Beijing’s decision to close many smaller domestic mines for safety reasons.
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