NPC members from Shanxi province proposed a curb on coal imports in the annual meeting of China’s parliament, so as to make sure that the overcapacity cut in coal industry could have a material effect.
Thanks to China’s campaign of overcapacity reduction and cutbacks on production activity, China’s coal market swung back to an upward track in 2016, with majorities of the money-losing coal miners returning to profitability. Coal industry in China fulfilled the 250 million capacity-shedding task ahead of schedule; the output of raw coal fell 9.4% year-on-year, as stated in the proposal.
However, the proposal contended that coal imports surged sharply at the same time. In 2016, China’s coal import amounted to 256 million tonnes, representing a growth of 25.2% on a year-on-year basis. The monthly imports of coal recorded 26.84 million tonnes in December 2016 alone, rising 52.2% from a year ago. Moreover, in January 2017, the nation imported 24.91 million tonnes of coal, which soared 64.4% from the same month a year earlier.
The delegates argued the drastic growth in import volume took up shares in coal market, deteriorated the problem of oversupply and lessened the positive impacts of the aforementioned campaigns.
In addition, according to the petition, the coal in question was mainly imported from Indonesia and Australia, most of which was low-grade coal with low calorific value, high ash and sulfur content. The increasing usage of such coal is very much likely to worsen the festering pollution crisis in China.
-Edited by Mysteel.net
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