Former coal-fired Battersea Power Station
Battersea Power Station is seen at dawn, surrounded by cranes and with one of it's four iconic chimneys missing, in London, December 9, 2014. The decommissioned coal-fired power station, not used since 1983, is being redeveloped into retail, office and residential use over the next four years. One of the planning requirements is the preservation of the character of the original building, which involves taking down each chimney and wash tower and then rebuilding them. Reuters/Toby Melville

China’s concern on increasing pollution has prompted it to shift a bit from thermal power production. Diminishing economic status of the nation also added to the decision.

In July, 9.7 million tonnes of thermal coal were imported by the country, which was bit more than what it transported in June. On overall yearly level, however, it was 24.6 percent less. According to the statistical analysis, coal imports from January to July in 2015 were down 39.1 percent during the same period in 2014.

Reports suggested China has started moving coal from inland mines to coastal users. Therefore, it is predicted that China will no more have to import coal. Rather, it will have the capability to export the same to other countries around the globe. The nation has been evidently trying to transport electricity in recent times.

CBA commodity researchers Vivek Dhar and Kofi Mensa focused on number of factors that lead to the dropping demand of coal in China. Besides the economic slowdown, rising coal supply and increasing import tariff also constitute vital reasons for diminishing demand of coal. Except for Indonesia, which has negotiated on free trade agreement, every other nation is affected by the imposed import tariff.

China Coal and China Shehua play a vital role in over-supplying coal to the nation at a reduced cost. Both the companies have been asked to reduce outputs by the government. “Improving local coal railway infrastructure and stricter environmental regulation on coal imports will likely pressure China’s thermal coal imports even lower,” Dhar and Mensa said, via the Business Insider.

They added, “With demand slowing and traded thermal coal markets well supplied, we could see thermal coal process remain subdued until we start seeing thermal coal export supply reduce.”

According to environmentalists, the lower imports by China show the reduced use of coal, which is thereby softening the seaborne coal market.

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