Japan Major Steels Require China Coking Coal Capacity Expansion

Japanese integrated steel makers, coal consumers and Chinese coal producers held a conference to discuss about coal supply in China on Tuesday. Japanese participants, the persons in raw material division of integrated steels, electric power companies and trade firms were 108 while 61 of Chinese delegations including Mr. Wang An, chairman and executive officer of China Coal Energy Company.

Mr. Michihide Iwasa, general manager of the raw material division at Kobe Steel required Chinese delegations to expand domestic production capacity of metallurgical coal under a long-term perspective. Additionally, he required the improvement of efficiency in the use of metallurgical coal and stable export for the long term as keynote speech.

Mr. Iwasa pointed out China, which imported 13 million tonnes of metallurgical coal in January-June 2009, has a large impact on the global trade market, which seaborne trade volume is estimated about 200 million tonnes per year. And he asked Chinese steel industry to decrease specific consumption by closing old and inefficient facilities.