China may ban low grade coal supply

China's National Energy Admnistration has released draft regulation to the local coal industry, for banning the supply of low grade thermal coal. they may ban the import and domestic delivery of poor-quality (Net Calorific value of 4540 Kilocalories per kilogram or less) thermal coal. 

Poor quality thermal coal supply ban may benefit better quality thermal coal exporter such as Australia, S.africa etc and may support the prices as well. As the higher grade coal would be required for blending with domestic coal.

This movement from Chinese government could slash or force on to other markets about 50 million tonnes, about half, of Indonesia's exports.