Chinese demand boosts deals at top coal conference

The burgeoning demand for thermal coal shipments in China, driven by a surge in and an increase in domestic prices of the polluting fuel, led to a flurry of deal-making at the world's largest industry conference held in Indonesia.

Traders who supplied China and officials from mining companies in Indonesia, the top exporter, were eager to negotiate deals during the three-day Coaltrans conference that concluded at Bali's Nusa Dua resort.

According to a presentation given at the conference by Rodrigo Echeverri, the head of commodities research at Noble Research, China's imports of the power-generating fuel are expected to increase by 100 million tonnes this year, reaching a record 329 million tonne.

Additionally, they are projected to rise by another 49 million tonne in 2024. While China's economic growth is being adversely affected by a troubled property market, the increased demand for electricity and coal has been propelled by extreme weather conditions and economic growth in other sectors.