China increased coking coal imports by 87.9% y/y in January-April

In January-April 2023, China increased the import of coking coal by 87.9% compared to the same period in 2022 – up to 30.99 million tons. The average purchase price of raw material was $198.6/t, which is 29.5% exceeds the prices of January-April 2022. Kallanish reports about it with the reference to the data of the Main Customs Administration.

The main suppliers of raw materials for four months are Mongolia, Russia, Canada and America. Australia ranked sixth with a market share of 1.7%.

In April 2023, deliveries of imported coking coal to China amounted to 8.39 million tons, which is 11.7% less compared to March 2023, but 97% more compared to April last year. In March, the import indicator reached a three-year high, but in April the results could not be maintained.

The average deal price decreased by 2% compared to March, and fell by 29% by April 2022 – to $198/t.

Mongolia and Russia maintained their lead in shipments in April, but the US overtook Canada to take third place with a 37.7% month-on-month increase in shipments. However, shipments from Australia fell by 40% compared to March, despite the lifting of import bans.

As GMK Center reported earlier, Chinese steel industry as part of China’s ambitions to achieve carbon neutrality by 2060 plans to reduce coking coal consumption in steel production by 20-25% over the next 7 years.

In 2022, the production of coking coal in China amounted to 676 million tons. Another 64 million tons of raw materials were imported. Due to its heavy dependence on coal consumption in blast furnace steel production, China’s steel industry accounts for about 20% of the country’s total annual carbon emissions.