China, the world's largest coal producer and consumer, remained a net exporter of coal in the first seven months of the year, the official customs data showed. China exported 4.78 million tonnes of the hydrocarbon in July, a fall of 32 percent from June, bringing total exports in the first seven months to 30.28 million tonnes, the customs administration said.
Imports in the first seven months rose 19.4 percent from a year earlier to 24.94 million tonnes. As it stages the Olympics, China faces its worst power shortage since 2004 because generators cannot secure enough coal or refuse to pay soaring coal prices while selling their power at state-set tariffs.
China's coal exports in June were 6.99 million tonnes, an increase of 79 percent over May and the largest monthly level in the past several years, partly due to the delayed settlement of term prices between Chinese miners and overseas buyers.
July exports fell mainly because international coal prices had been easing after hitting a record high in early July, analysts said. "It is not very profitable for traders to export now," said Judy Zhu, an analyst at Standard Chartered Bank.
July exports had been expected to slow due to tight domestic supply and the government's determination to ensure sufficient coal for domestic users, especially power plants, ahead of the Beijing Olympics.
Beijing is widely expected to take action to curb exports as a way of bolstering coal supplies in the country, including reducing the second batch of coal export quotas or delaying its issuance until after the Olympics. Coal prices have remained high in China, despite government orders in June and July that they should be capped at June 19 levels, although international coal prices have been declining in the past few weeks.
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