MARKET OVERVIEW

MARKET OVERVIEW

14 Apr 2021 07:43

Mongolia's coal exports are being negatively affected by the pandemic

Mongolia's coking coal exports to China remain low this week due to strict import restrictions at Chinese border crossings to prevent the spread of the Covid-19 epidemic.

In recent days, the average daily customs clearance of Mongolian coal at the port of Gantsmod has not exceeded 50 vehicles, which is a significant decrease from 200 vehicles on March 16, 2021, and 530 vehicles on March 15, 2021.

 

In the third week of March, the price of thermal coal at the port of Newcastle rose significantly from the previous month.

As of the week of March 19, 2021, thermal coal at the port of Newcastle, the port of Richards Bay in South Africa, and the port of ARA in Europe increased overall compared to the previous week.

The price of thermal coal at the port of Newcastle (6000 kcal) closed at 92.54 USD / ton during the week, up 2.48% from the previous week's 90.3 USD and up 7.87 USD from the previous month's 85.79 USD / ton is an increase of 35.15% from USD 68.47 / ton in the same period of the previous year, which is a new record since mid-March 2019.

 

Coking coal imports to the lowest level in 5 years

By 2021, real coking coal imports have not increased as much as in the same period last year. According to the General Administration of Customs of the People's Republic of China, coking coal imports in January 2021 were 6.35 million tons, the lowest level in five years, down 58.1% from a year earlier.

By restricting Australian coal imports, Mongolia and Russia have become major suppliers of coking coal to China. In February, China imported 2.32 million tons of coking coal from the two countries, accounting for 71.8 percent of total coking coal imports. In January, a total of 4.76 million tons of coking coal was imported from the two countries, accounting for 75.0% of total coking coal imports.

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