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Coal price drops as China shuts door on Australian imports until 2019

Coal News - Published on Mon, 19 Nov 2018

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ABC reported that China has shut the door on coal imports until at least next year, creating uncertainty in the Australian market. Mike Cooper from Platts Coal Report said there was an oversupply of coal in China. He said unless there was a very cold winter, further imports would not be needed for the next couple of months at least. He said “China has produced so much coal for the winter period the power companies have 30 days’ worth of consumption on their stockpiles. It’s really creating tidal waves of uncertainty in the market. China takes about 25 per cent of Australia’s thermal coal from the Newcastle port and finding a home for that coal would be difficult. The prices aren’t high enough to switch Australian coal to India so people are wondering where these Australian shipments can go.”

Limits to imports were initially put in place in the middle of this year but now Chinese authorities have stopped all imports of coal from across the globe and the ban is not expected to be lifted until early 2019. Thermal coal prices for delivery to China have dropped significantly as a result, falling from $90/tonne in February to $60/tonne.

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Posted By : Nanda Koijam on Mon, 19 Nov 2018
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