- Ganqimaodu tightens management of open-air coal stockpiles
- Border truck traffic weakened during August’s second half
After Naadam Festival celebrations in Mongolia in July had interrupted Customs clearance and led coal exports to fall, the country’s export activity faced more disruptions in August due to the campaign by Chinese authorities against dust pollution at border ports in China, the sole destination for Mongolian coal last month.
During August, Mongolia’s exports of coal for all uses recovered by 3.2% from the previous month to 9.42 million tonnes, with increases recorded in volumes of all major coal types, according to data from Mongolia’s Customs General Administration (CGA).
Specifically, those of bituminous coal (including coking and thermal grades) ticked up by 1% to 8.31 million tonnes, while anthracite, lignite and other coal types all increased by 58%, 41% and 8.4% to 13,257 tonnes, 557,335 tonnes and 545,251 tonnes, respectively, the CGA statistics show.
After been suspended over July 11-15 during the Naadam break, coal exports from Mongolia to China recovered rapidly last month and remained robust during the first few weeks. However, cross-border shipments slowed again from mid-August as Chinese port authorities tightened management at Ganqimaodu border port in North China’s Inner Mongolia Autonomous Region.
The port authorities had demanded that port-based traders clear their open-air coal stockpiles into covered warehouses as part of efforts to alleviate dust pollution around the border port. The campaign had led Mongolian coal transport to slow throughout the second half of last month, with traffic and coal clearance volumes at the border port slumping notably from previous levels, as Mysteel Global reported.
Reduced supplies also propelled Mongolian coal prices higher at the port last month, with Mongolian 5# raw primary coking coal (A 18%, S 0.6%, G 80-85) standing at Yuan 1,750/tonne ($260.8/t), ex-stock Ganqimaodu and including a 13% VAT, rising by Yuan 600/t from the end of July, according to Mysteel’s assessment.
On September 11, Mysteel assessed the same coal type at Ganqimaodu lower at Yuan 1,694/t, a consequence of softened market sentiment in China and the patchy recovery in truck traffic via the port this month.
However, some players still expect Mongolian coal prices to remain resilient in the near term, noting that the upcoming string of public holidays in China — the Mid-Autumn Festival (September 25-27) and the National Day (October 1-7) — will further disrupt coal imports from Mongolia.
China received all of Mongolia’s coal exports of 77.77 million tonnes over this year’s January-August period, the CGA data show. Compared with the first eight months of last year, Mongolia’s exports this year were higher by 47%, Mysteel Global calculated.
Note: The article is published as part of a content sharing agreement between Mysteel Global and BigMint.
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