As outlined in a statement issued by China's Ministry of Industry and Information Technology (MIIT), in 2009 and 2010 China's imported coking coal volumes increased sharply, reaching 34.4 million mt and 47.27 million mt respectively, and accounting for seven percent and eight percent respectively of total domestic coking coal consumption. Accordingly, China has became a net importer of coking coal from a net exporter of the product.
The MIIT went on to say that in 2011, because of the floods in Australia, the leading international exporter of coking coal, and due to the continuous recovery of the world's iron and steel industry, a situation of insufficient supply and increased demand has developed, with coking coal prices thus continuing to rise. Currently, the spot price of coking coal in the international market has exceeded the historical record of $300/mt; meanwhile, the average price of second grade metallurgical coke in China's domestic market is RMB 2,050/mt, up by RMB 155/mt compared with the price in January.
The MIIT stated that domestic coking coal resources are almost able to meet the needs of China's iron and steel industry, though resources of high-quality coking coal are insufficient. The MIIT concluded by stating that Chinese steel enterprises should focus on increasing their self-sufficiency in coking coal supplies.