China Sept coal imports hit highest since Dec 2014 on domestic output curbs

16 October  2017

China’s September coal imports rose to their highest level since December 2014 as Beijing’s rigorous safety and environmental inspections across the country ahead of the party congress curbed output at domestic miners.

Coal shipments were 27.08 million tonnes last month, up 10.8 percent from a year ago, according to data from the General Administration of Customs released on Friday.

Imports for the first nine months of the year were up 13.7 percent to 204.85 million tonnes, reflecting strong appetite for the fuel despite the country’s effort to cut coal consumption amid its steadfast campaign against air pollution.

The figures include lignite, a type of coal with lower heating value that is largely supplied by Indonesia.

China’s State Council launched a series of inspections in late August targeting coal mines, seeking to improve safety conditions amid a wave of accidents.

Coal output in August fell to a 10-month low, according to data from the National Statistics Bureau, as some miners temporarily shut production, meaning they avoided checks.

Thermal coal prices on the Zhengzhou Commodity Exchange soared to a record of 658.6 yuan ($100.11) a tonne on Sept. 19.

Regions such as the three northeastern provinces of Liaoning, Heilongjiang and Jilin as well as some western provinces are “facing difficulties in securing coal supplies”, according to the National Development and Reform Commission (NDRC).

In September, some operators of coal-fired power plants in Heilongjiang province issued a plea to the NDRC asking for help with securing coal supplies.

“The output curbs make it really hard for utilities to get coal. So they have no other choices than buying from somewhere else,” said Xu Bo, analyst at Haitong Futures.

The NDRC issued an order earlier this month to ensure stable supplies of coal and rational levels of stockpiles are kept at key times and in key areas.

“Although autumn is not a typical high season for coal demand, coal supply will remain under pressure under strict environmental and safety inspections,” said Xu.

Source: Times of India