Statistics from Zhangjiagang Quarantine and Inspection Bureau show that the first six months of the year saw a total of 172,000 tons of imported coal worth US$44.31m, a sharp drop of 81 per cent and 66 per cent respectively over the same period last year.

Analysts believe that the government’s tightening of credit to slow down the economy has reduced the demand for electricity and coal. The other important factor was the flood experienced at the end of last year in Queensland, Australia, where most of Zhangjiagang’s coal imports are sourced. This had a severe impact on coal production and exports, causing price hikes in coking coal in the Asia Pacific market. As a result, imported coal is currently Rmb100 per ton more expensive than domestic coal, meaning that Chinese companies are less inclined to import.