China May Toughen Coal Import Ban

BRISBANE, Australia - June 17, 2013 - PRLog -- Maximum moisture and volatile contents could be added into the terms, which have demanded imports to be above 4,544kc NAR, while ash and sulphur content should be lower than 25% and 1% respectively.

The impact of the ban could be even greater than originally anticipated if this is confirmed. The original version was set to cut import volumes of 60-70mt/yr, according to earlier forecasts.

The ban is expected to cut power groups’ profits significantly, however, while the companies have handed a joint report to the government this week outlining their concerns.

Despite this, market players have been overwhelmingly supportive of the action. Small players in China and Indonesia are likely to be phased out, insiders predict.

As the new regulation is expected to be implemented within a couple of months, Chinese traders are becoming cautious this week on settling new deals, despite continued interest from generators for the low c.v. materials.

Fresh business was also curtailed by the slight firming of import prices in the week, trade sources said.

This article first appeared in McCloskey China Coal Report. The latest information on the Chinese coal industry can be found in the McCloskey China Coal Report which presents monthly updates on both the producer and consumer sides of the Chinese coal market.  With information on trade, transport and policy updates, the McCloskey China Coal Report provides comprehensive coverage for anyone dealing with the Chinese coal market. To compliment the monthly report, daily updates are also available via McCloskey China Coal Report Daily.

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