Markets Mining & Energy

Coal Strategy: Avoid China

Lars Schernikau, the co-founder of HMS Bergbau AG, recommends the coal producers not to hang their hopes on China. It would be better for the long term to maintain the existing consumers’ loyalty.

Lars said it at the event that was held by Petromindo. He revealed some data showing that China’s coal imports continue falling. Besides, there are many policies that are often changed so it will be more difficult to get consistent sales. Moreover, China keeps focusing on non-energy intensive industries.China coal import

Lars’ suggestion is not interested on China’s huge purchase price. Do not expect on large Chinese market because China is also a coal producer. Maintain a loyal customer. There are still many other large markets due to the lack of electricity consumption per capita.

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Rowena Suryobroto


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