Chinese end users presented improved purchase appetite for Mongolian coal this week, in the wake of reported import ban for Australian coal.
Daily coal trucks passing through China’s Ganqimaodu border crossing connecting Mongolia recovered fast to over 1,000 this week, compared with average 894 in the preceding week, showed data from sxcoal.com.
Some Chinese state-owned energy companies and steel mills have received verbal notifications from customs authorities to suspend coal imports from Australia, Global Times reported, citing a news story published by Australia’s Sydney Morning Herald.
The import ban may be closely related to the worsening Sino-Australian relations, China’s need to digest domestic coal stockpiles and better regulate domestic coal prices, and investment in renewable energy, according to Global Times.
Australian officials have not received any formal notice from China presently, while Chinese customs authorities refused to provide straight answer during the conference release held on October 13.
Some analysts believe Mongolia is highly likely to overtake Australia as China’s largest coal origin in the near future.
In recent years, China-Monogolia economic and trade cooperation has become increasingly close. Mongolia has been continuously expanding its coal exports to China by virtue of its price and geographical advantage.
China is a large coal producer, but its coastal regions still import large amounts of coal from Australian and Indonesia each year in part because of high transportation costs from inland northern production areas.
With the construction transborder railways, Mongolian coal is getting more available to coastal end users, which accelerates shifting of some demand from seaborne supplies to the Mongolian coal.
Mongolia exported 4.65 million tonnes of coal in September, rising 17.17% from the preceding month, showed data from sxcoal.com.
Boosted by rising demand from China, the country’s coal exports to China reached 4.48 million tonnes last month, rising 19.02% month on month, and up for six straight months. The volume accounted for 96.4% of Mongolia’s total coal exports during the month.
Mongolian coal exports to China surged following establishment of Green Channel for bilateral trades since August this year. In the same month, Mongolia exceeded Australia as China’s top coking coal supplier.
Chinese market is of significance to Mongolian economy. More frequent visits of leaders in the two countries are likely to further boost trades.
On September 15, an agreement on border management and cooperation was signed during a talk between Mongolian Foreign Minister Nkhtewang and Chinese Foreign Minister Wang Yi in Ulaanbaatar.
China said it will expand imports of agricultural and animal husbandry products and coal from Mongolia.
Source:sxcoal
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
Please Contact Us at：
media@xindemarine.com
.gif)
