Chinese coal imports in Jun’18 have increased 18% from the year-ago month to 25.47 MnT, as per the data provided by General Administration of customs.
The spurt in power demand had caused a coal buying spree among the utilities to shore-up the power generation. Besides, traders in the country had mentioned that the Chinese government had relaxed the customs checks on coal imports.
Coal imports were also 14% higher on the month from 22.333 MnT in May’18. During the first half of CY18 (Jan’18-Jun’18), the country has imported 146.19 MnT coal, up 10% Y-o-Y from a year earlier.
Chinese coal buying is, however, likely to slow down after covering their share of import demand for the summer. The rise in hydro-power generation in the country would also provide much needed relief to the thermal power generation.
The slight fall in Chinese buying may incite decline in Indonesian coal offers, which have been rising as a result of the supply tightness. Market participants have attributed the bad weather behind the reason for the tightness which had affected vessel movement from the country.
Offer from Indonesian 4200 GAR coal from East Kalimantan was heard at USD 49/MT, on FoB basis, while coal from South Kalimantan was offered at USD 48.5/MT. However, market participants had informed that the buying interest for this grade was seen at USD 47.50-48/MT.
Similarly, offer for 3800 GAR coal was heard at USD 39/MT on FoB basis, against bids at USD 37.5-38/MT.
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