Source: Xclusiv According to Xclusiv, “the data suggests a growing trust between Japanese owners and Chinese shipyards. Japanese orders placed with Chinese yards have nearly doubled in 2023, and they’ve already placed 12 new orders (6 bulkers and 6 gas carriers) in the first four months of 2024. Talking about China, the country’s metallurgical coal (met coal) demand is expected to see a modest increase in 2024, despite ongoing challenges in the key steel consuming sectors – property and infrastructure.
These sectors account for roughly 30% of China’s total steel consumption. Despite the struggles in property and infrastructure, China’s met coal demand has continued to rise in the past two years. This is attributed to a supportive manufacturing sector and robust exports that have encouraged steel mills to maintain production levels.
However, the growth rate has slowed down, with 2022 and 2023 witnessing increases of 2.8% and 4.6% respectively, compared to higher figures in previous years”.
Meanwhile, “looking at the import landscape, Mongolia and Russia are expected to remain China’s dominant met coal suppliers in 2024, continuing a trend established in recent years. Australia, traditionally the top source, has seen its market share dwindle due to an unofficial import ban that was lifted in 2023. Although the ban has been lifted, Australian exports are still far from pre-ban levels.
Meanwhile, Mongolia and Russia are expected to see stable or slightly increas.
