China On Track For Net Coal Importer Status By End Of 2007 - Reuters

[hatrack]

HONG KONG - China, the world's top coal producer and consumer, may swing sooner than expected into a net importer of the fuel by the end of 2007, a move that will boost prices and step up competition among Asian energy importers.

Chinese coal output is not growing fast enough to power an economy expanding at an annual rate of more than 10 percent, especially as oil prices are high and Beijing is closing small mines for safety and environmental reasons, analysts say. "China will be a net importer of coal this year," said Paul Markowski at Global Research Partners.

That view was echoed by international coal traders and producers although some in China were more cautious. "In the long run, we do believe China will be a net importer, but not this year," said an official at one of the country's top coal producers. "The economy is still very strong. We need enough coal to fuel the economy."

China is also rushing ahead with an ambitious programme of port expansions, to be able to take in larger vessels from overseas coal producers. This suggests China will be able to absorb some of the huge growth in low quality Indonesian coal output projected for 2007, bullish news for the global coal market and for rival producers in countries such as Australia and South Africa.

EDIT

http://www.planetark.org/dailynewsstory.cfm/newsid/40221/story.htm

[4dsc]

1. This sound's ridiculous

but do you think the US would sell China dirty coal for them to burn so they can produce more greenhouse gases and pollution?? What a vicious circle..

[hatrack]

2. It doesn't sound ridiculous at all

If US coal companies could make enough of a profit doing so, they'd gladly sell coal to China - especially if that allowed them to do an end-run around potential GHG legislation here in the US, whether caps or a carbon tax.

[phantom power]

3. Sadly true. We've been exporting our pollution to China for years.

This would just make it a little more explicit.

[jpak]

4. More likely it would come from Australia (and they will soon sell them uranium too)

IIRC I believe the US is importing some coal as well (because of the western US transport bottleneck)...