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Chinese clampdown on thermal coal imports was no surprise - Yancoal

Coal News - Published on Wed, 10 Oct 2018

Image Source: Caixin Global
Financial Review quoted the biggest pure-play coal miner on the ASX as saying that a recent Chinese clampdown on thermal coal imports was no surprise, while analysts expect the Middle Kingdom's demand for the fuel to remain strong in coming months. Chinese demand for Australian thermal coal was stronger than expected in the first half of 2018, but softened in September after the Chinese government imposed unofficial restrictions on coal imports in a bid to prop-up its domestic coal miners. Yancoal became the ASX's biggest pure-play exporter by volume when it acquired Rio Tinto's thermal coal mines in 2017, and the company's investor relations general manager Mr James Rickards said the import clamps were becoming a familiar part of "shoulder season" in the Chinese energy sector, which falls between the summer and winter demand peaks.

Mr Rickards said that "China's reduction in coal imports is almost becoming an annual tradition, as the government works to try and support local producers. As a result, it's been both anticipated and prepared for. We're likely to see continued fluctuations in pricing across both low and high ash thermal [coal], but the China decision shouldn't cause too significant a ripple."

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Posted By : Rabi Wangkhem on Wed, 10 Oct 2018
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