Earlier than the expected April 1, Mongolia has started the resumption of coal exports to China via its top coal delivery conduit Gashuun Sukhait in its South Gobi province on March 23, according to a news report by Mongolia government-backed Montsame News Agency late on Monday.
“I heard that a few dozens of trucks were driven through Gashuun Sukhait-Ganqimaodu route on Monday,” a Shanghai-based market watcher confirmed, adding, “the total volume, though was no comparison to the normal level prior to the virus outbreak, even though each truck can carry 70-90 tonnes of coal”.
Ganqimaodu in Bayannur of North China’s Inner Mongolia, borders Mongolia’s Gashuun Sukhait checkpoint, and in the early days of the coal export resumption, a maximum of 300 trucks/day will be through the Sino-Mongolia border, which was still much lower than over 1,600 trucks moving coal across the border during the peak days.
Mongolia, China’s largest coking coal supplier, temporarily shut down its four border ports for coal exports including Gashuun Sukhait on February 10, and as of March 24, it remains unclear when the other three will resume operations.
To minimize the risk of the COVID-19 spread, all the coal trucks will be sprayed with disinfectant, drivers, regulators, dispatchers and checkpoint officials will be wearing protective suits, and logistics companies are requested to deliver coal only via containers to reduce pollution and loss of coal during transportation, according to the news report.
When the trucks are cleared at China’s checkpoints, containers will be replaced with empty ones immediately, making it unnecessary for drivers to leave the vehicle, according to another Mongolian media reported. No Mongolian drivers will be allowed to stay overnight in China either.
Note: This article has been published under an article exchange agreement between SteelMint and Mysteel — a China-centric insight and global metal markets intelligence providing company.
As of March 23, Mysteel’s price for Mongolian prime coking coal with 11% ash, 25% volatile and 0.7% sulphur grew Yuan 30/tonne (USD 4.2/t) from February 10 to Yuan 1,130/t including the 13% VAT at Ganqimaodu, according to Mysteel’s price data, which was Yuan 50/t higher than on January 23 before the Chinese New Year holiday.
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