NUSA DUA, Indonesia, Sept 26 Reuters China39;s burgeoning appetite for thermal coal shipments due to a surge in electricity demand and a spike in domestic prices of the polluting fuel has spurred a flurry of deal making at the world39;s largest industry conference in Indonesia.
Traders supplying China and officials from mining companies in top exporter Indonesia eager to strike deals thronged the conference hall in Bali39;s Nusa Dua resort for the threeday Coaltrans conference that ended on Tuesday.
China39;s imports of the power generating fuel are expected to rise 100 million tonnes to a record 329 million tonnes this year, and by another 49 million tonnes in 2024, Rodrigo Echeverri, head of commodities research at Noble Research said in a presentation made at the conference.
They Chinese buyers think demand will be higher. Also the nonpower sector, like the chemical sector, has quite high demand, Ramli Ahmad, President Director at Indonesian coal miner Ombilin Energi, said on the sidelines of the conference.
Expectations of resilient coal demand in China, the world39;s largest consumer and importer of the fuel, could delay a peak in global coal use, envisaged under climate goals, as miners supply coal for longer at competitive prices, traders say.
Economic growth in China is being dragged down by a beleaguered property market, but extreme weather and growth in economic activity in other sectors have driven demand for electricity and coal higher.
Six Chinese…