The prolonged contraction of the real estate market has caused a slowdown in the growth rate of heavy industry and offset the increase in demand. This is reported by Bloomberg, according to UNN.
Details
For China, coal remains key to the country's energy grid and energy security. China is considered the world's largest consumer and producer of coal.
Reference: UNN reported that China has consumed 30% more coal in the last quarter century than the rest of the world combined.
But currently, the situation is somewhat different - China's coal import volumes fell in June, reaching their lowest level since February 2023. This is evidenced by customs data published on Monday, July 14.
Shipments for the first half of the year decreased by 11% compared to the previous year.
China has recently started selling more fossil fuels on the international market. This is due to the prolonged decline in real estate prices, which has slowed the growth of heavy industry and offset the increase in demand, as the hot summer increased demand for cooling.
Beijing seeks to avoid a coal surplus, which remains key to its energy grid and energy security.
Chinese mining companies are expected to increase production by 5% in 2025. This, according to the publication, is a record for the seventh consecutive year. But this is likely to outpace consumption growth and limit local prices.
In turn, Chinese customs are tightening control over low-quality cargo from abroad. For example, they blocked some shipments from Russia due to the detection of excessive fluorine levels.
Recall
Despite sanctions, in 2025, Russia could receive over 20 billion euros from the EU for raw material exports, which is more than military aid to Ukraine. The largest importers of Russian raw materials are China, India, and Turkey.
Chinese President Xi Jinping agreed to allow the supply of rare earth minerals and magnets to the United States of America.