MARKETS

China bans high-sulphur coal

AS the Chinese government's social unrest concerns grow, it has decided to only import low-sulphu...

Sadie Davidson

China will continue to import coal, but restrictions will be implemented to monitor the grade allowed into the country.

Its leaders plan to limit energy from coal at 65% this year.

The NEA has drafted numerous plans since May last year.

A previous draft suggested limiting imports of lignite with a heating value lower than 4540 kilocalories per kilogram, more than 1% sulphur and ash higher than 25%.

Domestic demand for the fuel might rise “slightly” this year and imports were expected to be similar to 2013 levels, head of National Energy Administration coal division Ren Lixin told a conference in Shanghai.

The “growth at all costs” mantra which was adopted by the government in previous decades has lost popularity with its citizens as social concerns for health and the environment increased.

China’s economic boom has shown signs of slowing as Chinese exports fell by 6.6% last months and imports fell by 11.3%.

China’s coal consumption is at an all-time high, hitting a record 330 million tons in 2013.

Since China consumes as much coal as the rest of the world combined, changes in the course of coal demand will have major impacts on coal markets worldwide.

By restricting high sulphur coal, Chinese coal imports could slow much quicker than many expect, dragging down global coal prices.

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