Singapore — Various Chinese ports have implemented stricter clearance procedures for Australian cargoes, further dampening demand for Australian thermal coal, market sources said Tuesday.
Receive daily email alerts, subscriber notes & personalize your experience.Register Now
Custom authorities in Fangcheng in Guangxi, south China, were said to have held meetings on Tuesday and listed directives on handling Australian cargoes, according to sources.
Among the points highlighted during the meeting, cargo discharge will be limited during workdays, while "radioactive tests" will be conducted for every 500 mt of coal unloaded.
Custom clearance time can be expected to be about 3 months, according to market sources.
Delays for Australian cargoes had been observed since beginning of the year, with custom clearance taking about 40 days.
Cargoes of other origin have not been affected so far, while market sources are expecting other ports to implement similar policy.
There were talks about an import ban on Australian coal at Chinese northeastern ports about two weeks ago, but Chinese foreign ministry spokesman had denied a ban was being imposed.
Instead, he said, Chinese customs are conducting checks to ensure the coal meet environmental standards.
Coal Trader International
Platts Coal Trader International provides business executives, traders, risk managers and other mining and energy professionals with the full story and latest worldwide coal prices. Click the link below to see how this publication can meet your needs.Free Trial
S&P Global Platts reported Friday that China's General Administration of Customs has ordered an immediate halt to discharges of Australian thermal coal at Chinese ports.
Market experts say Australian cargoes could be diverted to India.
The expected long delays have continued to deter buying interest for Australian thermal coal in China, despite a wider price arbitrage.
The price of Australian 5,500 kcal/kg NAR grade of coal was assessed $60.60/mt FOB Newcastle Tuesday, up from $60/mt on January 2.
The price of domestic spot cargoes of the same grade was assessed at Yuan 635/mt FOB Qinhuangdao, up from Yuan 580/mt on January 2.
-- Hui Min Lee, email@example.com
-- Edited by Jonathan Fox, firstname.lastname@example.org