Asia led the coal world markets last year. Demand surged from all quarters, outpacing growth in supply and causing a paradigm shift in prices.
China remained a driving force: a thundering start to 2007 saw imports surge and exports falter, to the extent that for many months it became a net importer. It is unlikely to end the year as a net importer of power generation coal, but it will be close as steam exports are set to fall by 20 million tonnes.
India – followed by its neighbours – turned to South Africa to replace the missing Chinese supplies. Consequently South African and European prices rose, despite moribund European demand for much of the year.
South Africa is regaining its presence in the Far East, with the Korean gencos in particular purchasing a significant amount for 2008, after a seven-year absence.
An extended Indonesian rainy season and weather problems in Australia added to an already tight market. As China marches towards net importer status, Vietnam is making moves to keep its anthracite at home to fuel expanding domestic power capacity, straining the system still further.
For details, please contact Admin@EnergyAsia.com.