Chinese coal imports have increased 10% on the year to 250.71 MnT during the first 9 months of CY19 (Jan-Sep’19) compared with 228.33 MnT noted in the year-ago period, data provided by General administration of customs showed.
Coal import into China has been rising resiliently in CY19, noting a y-o-y increase for the sixth straight month during Sep’19.
During the third-quarter of CY19 (Jul-Sep’19), coal imports by the country stood 16% higher on the year at 96.12 MnT as against 82.83 MnT in Q3 CY18.
In the recent quarter, imports were supported by a tighter domestic coal market, wherein production was impacted by heavy rainfall, heat waves and a national safety campaign at mines. Besides, higher domestic prices relative to import prices have supported import demand.
The higher volume of imports already taken in the 9-month period could result in a sharp drop in coal intake during the final quarter of CY19, with Chinese government expected to implement stricter policies which would keep imports at a lower level comparable to the previous year.
Nevertheless, China is expected to be more reliant on imports for metallurgical coal compared to thermal coal, particularly for higher quality grades which are more difficult to source domestically. Apparently, decline in coal-fired power generation displaced by a pick-up in hydro and nuclear power generation, is expected to lower appetite for thermal coal.
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