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China becomes net importer of coal for first time
AFP
SHANGHAI
Petroleumworld.com 02 27 06China became a net importer of coal in January for the first time, an official said Monday, as the globe's largest consumer turned overseas to supply its booming economy.
China imported 4.7 million metric tonnes of coal in January, a rise of 81.1 percent from a year ago, according to figures from the customs bureau.
Coal exports in January fell 20.4 percent to 3.29 million tonnes, the fourth straight month of year-on-year declines.
Increased demand from China's energy-hungry economy could pressure international coal prices higher, much in the same way the nation of 1.3 billion people has driven oil prices higher.
China became a net oil importer more than 10 years ago and its increased demand has been one of the factors behind higher oil prices over the last few years.
To blame for the coal shortage were transportation bottlenecks and a change in tax rebate policy, said Hao Xiangbin an official with the Beijing-based China Coal Transport and Distribution Association.
"China is strong in the productivity but lacks the transportation ability. It's difficult to transport the coal from mine sites to the coastal areas," told AFP.
"That's why the coastal area needs to import from foreign countries," adding that it was the first time that China has had to import more coal than it exports.
Also affecting import patters was the cancellation of tax rebates, Hao said.
With coal still fuelling around 70 percent of China's electrical generation capacity China had to be more conservative with its resources, warned Hao."From the long-term perspective China has huge demands for energy, so it had better treasure what it has and stop exporting coal."
AFP 26 0921 GMT 02 07
Copyright© 2007 AFP. All Rights Reserved.
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