China Bans Coal Imports from North Korea for 2017

China has totally banned coal imports from North Korea for the entire year of 2017, a move against North Korea’s test of its long range ballistic missile on 12Feb’17, defying UN Security Council’s restrictions.

Will there be any impact on global coal prices as a result of the import ban?

An analysis of the contemporary demand and supply states, globally, indicates that there no likelihood of the ban impacting the prices as coal production is in an increasing mode in the key global coal producing countries.

China predominantly imported Anthracite Coal from North Korea. Other coal variants—Coking and Thermal– are imported from other countries.

During 2016, the cumulative coal imports from various countries into China were at 183.27 MnT, out of which 22.42 MnT was imported from North Korea. The entire import from North Korea during the year comprised of Anthracite Coal.

In China demand for Anthracite Coal arises from the usage in fertilizer industry.

COUNTRY WISE COAL IMPORTS INTO CHINA IN 2016

Source: China Customs