China’s ban on thermal coal imports at Tier 2 ports in end June have had the initial effect of cooling Asian thermal coal prices. But limited supply availability and the hot summer season have quickly reversed this trend. Chinese domestic coal prices have rallied, breaching the Yuan 600/mt FOB level, thus keeping the arbitrage window for seaborne cargoes open prompting buyers to work around the partial embargo and continue securing cargoes. Sebastian Lewis, S&P Global Platts Content Director for Greater China, Mia Corazon Aureus, Platts associate editor, and Michelle Zhao, editor, examine China's policy changes and their impact on prices.
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