- Ganqimaodu curbs lead to 32% drop in port stocks in two weeks
- Mongolian 5# coking coal prices rise by RMB 375/t ($56/t) since mid-Aug
Mongolian coal supply via China’s Ganqimaodu border port has continued to plummet following port authorities’ tighter environmental checks on open-air coal stocks. This led to rapid inventory drawdowns at the key crossing and fueled market jitters over a harder hit to China’s overall coking coal availability.
Port authorities at Ganqimaodu — the largest gateway for Mongolian coal exports to China — have ordered port-based traders to clear their open-air coal stockpiles since mid-August. The move came in line with a directive banning open-air coal storage and unloading amid heightened environmental inspections in the region, Mysteel learned from sources.
The mandate immediately curtailed truck traffic carrying new Mongolian coal shipments across the Ganqimaodu checkpoint, with the number of trucks cleared at the port plunging to just 632 units on August 14, down 51.5% from the previous day, according to Mysteel’s tracking data.
The truck traffic this week showed no signs of easing, with the number of trucks arriving at the inland port notching a new low of 505 on August 27. Excluding the Chinese New Year effect, this was the lowest level since October 19 2025 when the number dived to 107 amid Mongolian political turmoil, Mongolian mining glitches, and tax dispute between Tavan Tolgoi mine and Mongolian Customs.
However, coal inflows through Ceke and Mandula – the second- and third-largest import land port — stay unaffected, with their inbound trucks standing steady at 833 and 540 as of August 26, according to Mysteel’s data.
The intake loss via Ganqimaodu has still significantly hammered the overall coal availability at the three major border ports, which plummeted by 73.7% from a week earlier to 68,175 tonnes by Thursday.
The import slowdown has also quickly eroded salable Mongolian coal stockpiles at the Ganqimaodu port. Mysteel’s data indicate only 2.31 million tonnes stored at the port by August 28, depleting 1.09 million tonnes or 32% in the past two weeks. The reading was also 9.8% lower than the year-ago level.
Reduced supplies from Mongolia — China’s top coking coal supplier, accounting for around half of the country’s total imports of this steelmaking raw material — have heightened supply concerns among Chinese market participants following persistently low mining operations at domestic mines due to strict safety checks since late May.
In response, Chinese coking coal futures prices soared again on August 18, with the most-active contract for September delivery registering an intraday high of over 5% growth before closing the daytime session 4.05% higher at Yuan 1,374/t. The futures prices, with the most-traded contract shifting to next January contract from August 19, have consecutively recorded daily gains afterwards, though at a modestly slower pace.
Spot prices for Mongolian coking coal have also gained firm upward momentum on the back of limited saleable cargoes at major border crossings. The price of Mongolian 5# raw primary coking coal leaped by a cumulative Yuan 375/t since mid-August, settling at Yuan 1,665/t on an ex-stock Ganqimaodu basis by Thursday, with VAT inclusive, according to Mysteel’s assessment.
The latest tender results have generally sent a positive signal for Mongolian coal prices. A large steelmaker in Northwest China awarded tenders for 45,000 tonnes and 15,000 tonnes of Mongolian 5# washed primary coking coal at Yuan 2,021/t and Yuan 2,029/t, respectively, DDP with VAT. The average tender price rose by Yuan 70/t from the last session, according to sources.
Although the imported Mongolian coal market remains in a stalemate – where short supply bolsters price hikes while trading activities are still constrained by concerns over potential price retreats – participants largely hold a bullish view about the near-term market.
Note: This article has been published in accordance with a content exchange agreement between Mysteel Global and BigMint.
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