Thursday, 22 Apr 2010
Reuters quoted an executive at leading miner SUEK said Russian coal miners should not rely on unpredictable Chinese demand to boost exports, as several other Asian markets offer similar opportunities to raise shipments.
Ms Anna Belova SUEK director for strategy and corporate development said India and Japan were among the prospective alternative markets for Russian steam coal exports should China revert to domestic production at times of higher world prices.
She said "The Chinese economy was the main driver in demand growth for Russian coal in 2009, but there is a risk any overheating of the Chinese economy could provoke a significant rebound."
Exporters in Russia diverted spot coal last year from Europe to Asia's hungry markets. Coal information agency Rosinformugol says Russian exports to China surged to 9.9 million tonnes in 2009 from only 200,000 tonnes a year earlier. But SUEK Ms Belova said the sharp increase in shipments to China should not be viewed as a trend. She said it was a market reaction, to a decline in international coal prices after which China reduced production and became a net importer of hard coal.
Ms Belova said "Nobody is saying that China will import from 70 million to 100 million tonnes. When prices get to a certain level, it will return to expanding its own domestic production."
She said India, on the other hand, will have a shortage of coal and could soon be importing about 100 million tonnes annually.
Ms Belova said the shipment time from Russia Pacific coast to Japan was only six days about half the time it takes to deliver Australian or Indonesian coal. She said that coal demand was also growing in South Korea and Vietnam.
SUEK, or Siberian Coal and Energy Co is Russia largest steam coal miner. Ms Belova said it aimed to meet growing demand in Asia by increasing annual exports through its terminal at the Pacific port of Vanino to full capacity of 12 million tonnes.
(Sourced from Reuters)
Review: http://www.steelguru.com/news/index/MTQyMzU4/Russian_coal_should_pursue_new_Asian_markets_-_SUEK.html
Reuters quoted an executive at leading miner SUEK said Russian coal miners should not rely on unpredictable Chinese demand to boost exports, as several other Asian markets offer similar opportunities to raise shipments.
Ms Anna Belova SUEK director for strategy and corporate development said India and Japan were among the prospective alternative markets for Russian steam coal exports should China revert to domestic production at times of higher world prices.
She said "The Chinese economy was the main driver in demand growth for Russian coal in 2009, but there is a risk any overheating of the Chinese economy could provoke a significant rebound."
Exporters in Russia diverted spot coal last year from Europe to Asia's hungry markets. Coal information agency Rosinformugol says Russian exports to China surged to 9.9 million tonnes in 2009 from only 200,000 tonnes a year earlier. But SUEK Ms Belova said the sharp increase in shipments to China should not be viewed as a trend. She said it was a market reaction, to a decline in international coal prices after which China reduced production and became a net importer of hard coal.
Ms Belova said "Nobody is saying that China will import from 70 million to 100 million tonnes. When prices get to a certain level, it will return to expanding its own domestic production."
She said India, on the other hand, will have a shortage of coal and could soon be importing about 100 million tonnes annually.
Ms Belova said the shipment time from Russia Pacific coast to Japan was only six days about half the time it takes to deliver Australian or Indonesian coal. She said that coal demand was also growing in South Korea and Vietnam.
SUEK, or Siberian Coal and Energy Co is Russia largest steam coal miner. Ms Belova said it aimed to meet growing demand in Asia by increasing annual exports through its terminal at the Pacific port of Vanino to full capacity of 12 million tonnes.
(Sourced from Reuters)
Review: http://www.steelguru.com/news/index/MTQyMzU4/Russian_coal_should_pursue_new_Asian_markets_-_SUEK.html
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