Fangcheng port, located in southern China's Guangxi Zhuang autonomous region, has started to restrict discharge of imported thermal coal, forcing many overseas ships to offload at other ports, market sources said.
Confirming the ban, a foreign mining source said it was nearly impossible to unload coal at Fangcheng port, as the remaining import quota totaling 1.1 million tonnes was left only for coking coal.
Vessels could turn to Zhanjiang or Liuheng ports, located in Guangdong and Zhejiang, respectively, the source said, adding it would increase cost by 20 yuan/t or so.
"This would impact Australian coal greatly in the future," he pointed out.
There was only one-ship quota for import coal at Guangzhou port, while no restrictions at other ports, according to the source.
One Beijing-based importer said imported coal has not been banned at Guangxi port completely, as those with quotas were still allowed to enter.Impacted by import restrictions, Chinese traders and end users became more prudent in taking overseas coal, said a Fujian-based trader."The import policies actually remain vague and unclear now, but curbs do exist," he said. "It takes over ten days to get coal vessels unloaded at Guangzhou port, and market participants were getting bearish toward the long-term market.
"Foreign miners were still making tentative price lifts, despite lukewarm buying interest from China, said a second Fujian-based trader.
Indonesian 3,800 Kcal/kg NAR coal was offered at $46.5-47/t FOB on Supramax basis and settled at $46/t FOB, while 4,800 Kcal/kg NAR coal offered at $70/t FOB, he added.
Australian 5,500 Kcal/kg NAR coal was offered at $77-80/t FOB, he said.
A lack of output at overseas mines and increased inquiries did bolster bullish sentiment among miners, said a third Fujian-based trader.
Robust demand from southeastern Asian countries and rallying freight rates also helped push their offer prices up by $2-3/t, according to a Guangdong-based trader.
"But import coal prices may weaken as prolonged customs clearance at ports increases cost while domestic prices getting stable in the future," he remarked.
The freight rates for Panamax and Supramax vessels from Indonesia to South China climbed to $8/t and $9/t.
On September 19, the Fenwei CCI Thermal Index assessed imported 5,500 Kcal/kg NAR coal at $88.5/t, CFR southern China ports, rising $1/t day on day and up $4.5/t week on week.
On the same day, imported 4,700 Kcal/kg NAR coal was assessed at $73.5/t, CFR southern China ports, stable on the day and up $2.7/t on the week; imported 3,800 Kcal/kg NAR coal was assessed at $55.25/t, up $0.25/t from a day ago and up $3.45/t from the previous week.
source:sxcoal.com
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