皇冠体育app

Energy

皇冠体育app 2011 net coal imports to surge 63%

(Agencies)
Updated: 2010-12-01 10:56

皇冠体育app's net coal imports are expected to jump a staggering 63 percent to more than 200 million tons in 2011, as domestic output struggles to keep pace with blazing demand, Reuters reported on Nov 30, citing Citigroup.

Booming demand from power, steel and cement producers will boost 皇冠体育app's domestic coal demand by 7.3 percent next year from a year ago, while supplies will increase by only 4.8 percent to 3.38 billion tons, Citigroup said.

"Net imports should rise from (an estimated) 143 million tons in 2010 to 233 million tons in 2011. Demand surplus expands; and both domestic price and international price should rally," Citigroup said in a research report led by Scarlett Chen.

Related readings:  皇冠体育app's energy demand growth to ease in Q4    皇冠体育app takes measures to stabilize coal prices 皇冠体育app coal market gets international outlook  Govt extends resources search

Any surge in 皇冠体育app's coal imports would not only drive international coal prices sharply higher, but could also lift freight rates as buyers are bound to scout for supplies from as far away as the United States and Colombia, as suppliers in the Pacific would not be able to meet such demand.

Citigroup also said booming demand was expected to bring an 8 percent increase in 皇冠体育app's coal contract prices in 2011 and recommended investors buy into shares of Chinese coal firms such as Shenhua Energy Coal and Yanzhou Coal Mining.