Mongolian coal exports have recorded a growth of 26% on the month to 2.39 MnT in Aug’17, according to the customs data. The country had exported 1.9 MnT coal in Jul’17.
However, Monthly exports were 9% down on the year compared with 2.63 MnT coal exported in Aug’16.
Mongolian coal producers have been raising their output to meet the growing demand from China, but the long-lasting transportation issue continues to affect their coal sales.
With the long awaited rail line between the two countries still hanging in balance, most of the coal from Mongolia’s mines are transported across the border to China via one single highway, making it vulnerable to disruptions.
According to the reports, Coal trucks from Mongolia were forced to wait two or three days before they were even permitted to unload for inspections at the border last month.
Apart from the transportation issue, Coal export from Mongolia has been thieving on the coal supply shortage in China, opened up by environment regulations that have limited coal production and decision to ban imports from North Korea.
Total coal exported by Mongolia in CY17 (till Aug’17) has increased 71% Y-o-Y to 23.24 MnT, in comparison with 13.63 MnT coal exported during Jan’16-Aug’16 period.
Grade-wise Coal Exports:
Bituminous coal is the major grade exported by Mongolia, exports of which increased 24% M-o-M to 2.24 MnT in Aug’17. While Anthracite coal export was recorded at 0.02 MnT during the month.
So far, Mongolia has exported 22.03 MnT bituminous coal in CY17.
Major Coal Importers:
Mongolian coal exports to its major consumer China increased 28% M-o-M to 2.37 MnT in Aug’17. The remaining coal quantity being taken by the UK.
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