China Coal Price May Rise 5% as Imports Increase 15%, UOB Says

Coal prices in China may rise 5 percent in 2012 and 2013 and imports may increase 15 percent a year because of supply tightness, “strong” industrial demand and reliance on thermal power, according to UOB-Kay Hian Ltd.

Imports of coal for power stations and steelmakers may climb to 300 million metric tons in 2015 from an estimated 165 million this year, said Helen Lau, a Hong Kong-based analyst at UOB-Kay Hian, in a report e-mailed today. China’s thermal power generation rose more than 15 percent in the first 10 months of this year, outpacing a 12 percent increase in electricity consumption and countering an 8 percent decline in hydropower output, she said.