China is an economic superpower, nonetheless, the world’s second-largest economy requires huge amounts of coal on daily basis. It imported nearly twice as much coal in October as it did a year ago, in spite of signs the country’s power shortage is easing, according to customs data released on Sunday.
In October, the monthly purchases of coal reached 26.9 million tons. Nonetheless, that was down 18.2% from 32.9 million tons one month earlier.
Authorities in China worked hard to address a coal shortage in the country since late September. Back then many companies were forced to reduce production. They worked really well, as the number of Chinese provinces with significant power outages fell to two by mid-October.
Last week, the country’s State Grid said power supply, as well as demand in its areas of operation, returned to normal. However, China’s State Grid warned of challenges in the coming winter months. Data regarding China’s coal import by country is due later in November.
China, its trade partners, and coal
The U.S. retained its status as China’s largest trading partner on a single-country basis. Imports from the world’s largest economy slowed sharply to about 4.6% year-on-year in October. On the contrary, exports to the U.S. maintained a high growth pace of nearly 22.7%, according to customs data.
Imports from Australia fell 24.3% year-on-year in October, down from a 50.7% pace in September. In the past, Australia was China’s largest source of coal. Exports to Australia grew by 22.3%, down slightly from 23.8% in September.
The country’s overall imports grew by 20.6%, missing expectations of 25% growth. In the meantime, China’s exports surpassed expectations. Exports grew by 27.1% in October.
Exports are very important to watch since they have been the country’s single largest growth driver for the past year and a half.
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