China's Huaneng cancels nearly 15 cargoes of Indonesian coal due Nov-Dec: sources

Singapore — Chinese utility Huaneng has cancelled 15 cargoes of Indonesian thermal coal arriving in November-December at its power plants in Shanghai as the city exhausted its import quota for the current year, the company said in a memo sent to affected traders on Sept. 25 and seen by S&P Global Platts.

Huaneng has disseminated this information to all stakeholders in the supply chain, the memo read.

Huaneng declined to comment when contacted by Platts.

Three power plants under Huaneng, near to Shidongkou port in Shanghai, were said to be affected, a source close to the matter told Platts.

After a discussion with Shanghai customs, Huaneng did not manage to obtain quotas for cargoes arriving from November to December in Shanghai, the source added.

The cargoes were mainly Indonesian coal with a standard calorific value of 3,800 kcal/kg NAR, 4,800 kcal/kg NAR and 5,000 kcal/kg NAR, a second source close to the matter said.

Most cargoes involved were 55,000 mt, Supramaxes and about three to four cargoes were Panamax cargoes, he added.

Officials at Shanghai customs were not immediately available for comment.

Even though some utilities allocated with quotas were seeking cargoes, the possibility for a relaxation till the end of the year looks very dim, market sources said.

While most market sources in China remained pessimistic about a relaxation and held a bearish stance on the market in the near term, other sources said the import policy for coal remained a fluid situation in China.

Market sentiments remained mixed as Indonesian coal prices found support in the near term from post-monsoon demand in South Asian region, including Bangladesh, India and Pakistan.