📈 Fed's first cut since 2020: Time to buy the dip? See Tech-focused stock picksUnlock AI Picks

UPDATE 1-China Aug coal exports from Australia down 12.8 pct at 6.4 mln T - customs

Published 21/09/2015, 04:49 pm
© Reuters.  UPDATE 1-China Aug coal exports from Australia down 12.8 pct at 6.4 mln T - customs

* Aust shipments down 20.4 pct in Jan-Aug, Indonesia down 43 pct

* Weak demand, price signals deterring imports

* North Korean shipments continue to rise (Adds detail, analyst quotes)

BEIJING, Sept 21 (Reuters) - China imported 6.39 million tonnes of coal from its top supplier Australia in August, down 12.8 percent on the year, with the country's cost advantages eroded by declining domestic prices, data from the country's customs authority showed on Monday.

Australian miners normally benefit from a surge in demand in the summer as power plants in southern regions source cheaper coal from overseas, but oversupply has eroded the gap between domestic and overseas coal prices this year.

Analysts said overall imports are likely to remain under pressure for the rest of the year, with orders hit not only by weak demand but also by the devaluation of China's currency, which has further eroded the price advantages of foreign coal.

Australian imports were down 21.8 percent compared to July. Over the first eight months, the total reached 48.64 million tonnes, down 20.4 percent compared to the same period of 2014.

Total August imports, excluding lower-grade lignite, reached 13.48 million tonnes, down 11.6 percent compared to August 2014, with demand faltering as a result of China's economic slowdown and its campaign to boost the use of cleaner fuels.

Late last year, China announced it would impose restrictions on the import and utilisation of low-grade coals, and Australia has complained that its cargoes have been unfairly rejected at Chinese ports as a result of new quality standards. ID:nL3N0ZI2U9

But Australia's higher grades and lower costs have meant that it has fared better than rivals like Indonesia. China's second biggest supplier of imported coal saw deliveries fall 18 percent in August to 2.38 million tonnes, and is down 43 percent over the whole of the year.

"With prices currently so low, importers will certainly choose higher-quality coal," said Zhu Limin, coal analyst with Shanghai Securities.

"Normally, coal demand will increase over the winter, but whatever happens, China is not expected to slash imports from countries that produce high-quality coal, including Australia," he said.

Shipments to China from North Korea surged 41.8 percent in August to 1.82 million tonnes, and are up 33 percent over the whole of the year. Zhu said the surge might be driven by politics rather than the market.

Benchmark Newcastle coal prices GCLNWCPFBMc2 stood at $55.75 a tonne at last week's close, down more than 9 percent since the start of the year. Prices at the Chinese port of Qinhuangdao SH-QHA-TRMCOAL stood at 400 yuan ($62.82) a tonne, down 23.8 percent.

($1 = 6.3669 Chinese yuan)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.