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UPDATE 1-China Jan coal imports from Australia fall 16 pct y/y - customs

Published 22/02/2016, 07:39 pm
© Reuters.  UPDATE 1-China Jan coal imports from Australia fall 16 pct y/y - customs

* Overall imports down 9.2 pct amid supply glut, demand weakness

* Indonesian shipments slump 35.6 pct (Adds imports from Indonesia, North Korea, background)

By David Stanway and Ruby Lian

BEIJING, Feb 22 (Reuters) - China's coal imports in January from top supplier Australia fell 16 percent from a year ago to 4.27 million tonnes, with demand for overseas supplies hit by a domestic glut, data from the country's customs authority showed on Monday.

Deliveries from China's second-biggest supplier, Indonesia, fell 35.6 percent to 2.06 million tonnes over the period, according to figures from the General Administration of Customs. COAL/CN

"The main reason for the decline was the demand side, which was very weak in January, especially from the thermal power sector," said Wang Xufeng, an analyst at the Shanxi Fenwei Energy consultancy.

"On top of that there was the depreciation of the renminbi, with traders very prudent and avoiding imports ahead of the Chinese new year," he said.

However, imports from China's neighbour, North Korea, continued to defy the overall slowdown, rising 35.4 percent to 1.66 million tonnes. The country saw coal shipments to China rise 26.9 percent last year to 19.63 million tonnes, making it China's third biggest supplier.

The data excludes low-grade lignite.

Overall imports, including lignite, fell to 15.23 million tonnes in the month, down 9.2 percent from the same time last year, according to preliminary data earlier this month. import demand has slipped as a result of weakening demand and a huge supply glut at home, which has eroded the traditional cost advantages of foreign suppliers.

After falling by a third in 2015, domestic prices have recovered some ground this year, with thermal coal at the port of Qinhuangdao SH-QHA-TRMCOAL up 2.7 percent at 380 yuan ($58.29) per tonne.

Earlier this month, China released its latest action plan trying to tackle overcapacity in the coal sector, saying it would shed 500 million tonnes of production capacity in the next three to five years and halt approvals of all new projects. coal miners made the unprecedented decision to down tools over the Chinese new year holiday this year, saying that supplies were already ample. Normally, they continue producing over the holiday period in order to meet the winter surge in heating and power demand. imports of coking coal, used in steelmaking, fell 16.1 percent from a year ago in January, though deliveries from Australia rose 2.3 percent to 1.68 million tonnes over the period.

($1 = 6.5192 Chinese yuan)

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