China curbs coal imports after 5 months of record inflows
2020-06-15 08:33:36 [Print]
China has stepped up customs checks for coal imports, leading to lengthy processing delays at ports, four sources familiar with the matter said, as the country seeks to bolster the domestic coal industry.
China is curbing coal arrivals through import quotas and quality restrictions on downstream users, such as utilities, following record imports for the first five months of the year. As a result, imports can take up to 90 days to clear from roughly 30 days previously, two traders said.
Three coal traders said the backlog meant fewer import tenders from clients - mostly utilities in eastern and southern China. "There are only sporadic cases reported on import denial at this moment. But the market consensus is that more ports may strictly implement the quota policy," one of the traders said.
Authorities are seeking to support struggling domestic coal miners, and analysts expect imports to fall by as much as a quarter in the second half from the corresponding 2019 period.
Traders at Fuzhou and Guangzhou ports have reported processing delays and protracted document inspections at Fuzhou and Guangzhou ports.
A Fuzhou port official said the general customs bureau had set import quotas on utilities and the port authority had denied entry for some shipments that did not conform to quotas.
China's coal imports totaled 148.71 million tonnes in the January-May period, up 16.8% on year.
China is curbing coal arrivals through import quotas and quality restrictions on downstream users, such as utilities, following record imports for the first five months of the year. As a result, imports can take up to 90 days to clear from roughly 30 days previously, two traders said.
Three coal traders said the backlog meant fewer import tenders from clients - mostly utilities in eastern and southern China. "There are only sporadic cases reported on import denial at this moment. But the market consensus is that more ports may strictly implement the quota policy," one of the traders said.
Authorities are seeking to support struggling domestic coal miners, and analysts expect imports to fall by as much as a quarter in the second half from the corresponding 2019 period.
Traders at Fuzhou and Guangzhou ports have reported processing delays and protracted document inspections at Fuzhou and Guangzhou ports.
A Fuzhou port official said the general customs bureau had set import quotas on utilities and the port authority had denied entry for some shipments that did not conform to quotas.
China's coal imports totaled 148.71 million tonnes in the January-May period, up 16.8% on year.
