China's coal Imports in May 2013 was 27.57 Million tons (MnT) which is 3.9% less than the imports of April 2013, as per the Government's data. Whereas, compared to data of last year's same period coal imported in May is up by 5.6%. Last five months import till May has reached up to 136.17 MnT which is up by 20.9% from the same period last year.
In purview of uncertainty of China's ban on low grade coal import policies, China's weak local demand for coal led to coal's import including Lignite, fall by 3.9% in May as compared to previous month's data from the China Coal Transport and Distribution Association (CCTDA). Coal spot demands from China have become weak after the draft policies released by China's National Energy Administration (CNEA).
China's decision of banning the imports of low-quality thermal coal will directly hit the Indonesian miners, whose, exports to China had increased in 2012 after the removal of import taxes.
After all these cues Indonesian miners kept their coal prices high owing to strong demand from India.
Continuous falling of Chinese coal prices this year are nearing a level of four-year low. Whereas, spot prices of coal with a heating value of 5,500 kcal/kg stood at 610 Yuan ($99.59) a ton last week, in which sellers were offering discounts of 10-15 Yuan to the index to increase sales.
In a global slowdown cues South African coal market is also getting weaker due to weak demands owing to which South African RB -1 grade coal was quoted at around $77/MT and RB-2 was around $69/Mt. Whereas, Australian coal with a heating value of 6,000 kcal/kg closed at $83.30/MT. In United States 6000 NAR coal were quoted at around $63/MT.
In this dilemmatic market situation, freight market remains quite. Freight charges from Newcastle Port, Australia to mid China stood in between $12-$13/MT, Meanwhile, panamax freight charges from Indonesia and South Africa are respectively in range of$5-$6 and $16-$17/MT.
-Sourced
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