Bloomberg quoted CCB International Securities Ltd said in a research note that China, the world biggest coal consumer and producer may increase net imports of the fuel to 174 million tonnes this year to cover a supply shortfall.

CCB analysts led by Ms Karen Li said the nation may purchase as much as 230 million tonnes of coal each year between 2011 and 2015 as domestic output growth lags behind demand. Imports may grow 7.7% annually in the five year period accounting for 5.6% of consumption by 2015 from 4.9% in 2010.

According to Chinese customs data China bought more coal than it exported for the first time in 2009 when global prices were lower than the cost of domestic grades. Net imports, or overseas purchases minus exports, rose to a record 146 million tonnes last year from 103 million tonnes in 2009.

CCB, a wholly owned subsidiary of China Construction Bank, said in the report that “Our forecast reveals a potential supply deficit of 190 million tonnes to 230 million tonnes of coal in China lasting from 2011 until 2015. The shortfall would need to be filled by massive coal imports.”

According to CCB the nation may add 600 million tonnes of new production capacity in the next five years, compared with 850 million tonnes in the preceding period. Output growth may slow to 3.4% annually in the five years through 2015 from 6.8% between 2006 and 2010.

(Sourced from Bloomberg)