Chinese coal imports have increased 14% on the year to 25.4 MnT in Apr’19 compared with 22.28 MnT in Apr’18, as per the data provided by China’s General Administration of customs.
Imports had also attained a 3-month high total by rising 8% M-o-M from 23.48 MnT in Mar’19.
Despite concerns regarding import quotas and unofficial government restriction on Australian coal, Chinese coal sourcing have noted appreciable increase amid restocking demand ahead of summer.
However, media reports have claimed that China may extend to curb imports this month, in order to limit total imports to last year’s level of 281 MnT.
During the first 4 month of CY19, Chinese coal imports have risen 2% Y-o-Y to 100.02 MnT compared with 97.7 MnT in the corresponding period of CY18.
Further capacity reduction to be carried out:
Following years of industry reforms, Chinese domestic coal production was likely to recover after bulk of capacity closures were largely concluded.
However, the Chinese government has further planned to ramp up closures of small coal mines in order to boost safety and reduce pollution.
Chinese policy maker NDRC has recently said that it will close all mines with annual production of lesser than 300,000 MT, by the end of the year. It was also stated that the total number of such mines would fall to less than 800 by 2021.
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