China’s net coal imports increased 39.5 percent year-on-year to 217 million tons in the first 10 months of this year, according to data released by the National Development and Reform Commission (NDRC) on Tuesday.

China’s top economic planner indicated the high net import came amid rising stockpiles and slowing growth in coal consumption.

Over the first ten months this year, 1.87 billion metric tons of coal were transported by railway, down 0.6 percent year-on-year, while coal consumption, especially by power generators, slowed in the same period, the NDRC said.

At the end of October, the coal inventory in China’s major power plants reached 93.71 million metric tons, equal to 29 days’ usage, eight days more than the same period last year.

The coal stockpiles at major ports totaled 35.62 million metric tons, up 37 percent year-on-year. The price of 5,500kcal/kg steam coal at the Qinhuangdao Port is currently 635-645 yuan per ton, 165 yuan lower than at the beginning of the year and down 215 yuan year-on-year.

Imported coal is priced lower than domestic coal, which also bears the cost of transportation from China's northern production bases to southern consumers, Liu Enqiao, an energy researcher at Beijing-based Anbound Consulting, told the Global Times.

Currently the coal price has plummeted back to where it was three years ago, one industry insider said, and remains low even though market demand has improved since August.

"Coal prices will tend to be stable in the future and may even inch up along with China's economic recovery," said Liu of Anbound, attributing the drop to shrinking demand for coal both at home and abroad, but remarking that China remains the world's major coal consumer.

Coal power accounts for about 70 percent of China's energy structure, and the country will heavily rely on coal for at least five more years though the government vowed to increase usage of renewable energy such as solar and wind power in its 12th five-year plan, he said.”