MAY 30, 2020
Traders predict move to favour domestic sector at the expense of Australia
China is expected to promote the use of domestic coal by tightening import rules, starting with shipments from Australia, according to analysts and traders.
After imports to the world’s second-biggest economy jumped in the first four months of the year, market participants said it was likely Beijing would impose restrictions that made it more difficult or expensive for coastal utilities to bring in thermal coal from overseas. The commodity is burnt in power stations to create electricity.
MAY 20, 2020 / 4:52 AM
BEIJING/MELBOURNE, May 20 (Reuters) - China is expected to tighten coal import rules in the second half of 2020 to shore up its struggling domestic industry, after record arrivals in the first four months, just as demand tanked because of the coronavirus outbreak.
Imports could drop as much as a quarter in the second half from the corresponding 2019 period, analysts estimate, which is likely to boost pressure on major coal exporters, such as Australia, Indonesia and Russia, which are already battling weak demand because of the virus.
MARCH 19, 2020 / 10:31 CET
(Montel) Benchmark coal prices in the Asia-Pacific region defied a coronavirus-induced collapse in oil markets to climb 1% in the week to Thursday, although that resilience may not last long, analysts said.
Broker GlobalCoal’s Newcastle index for high grade (6,300 kcal/kg) Australian coal exports to Asia last stood USD 0.90 higher at USD 66.29/t, compared with last Thursday.
It remains toward the lower end of this year’s broad USD 65-75/t trading range but has so far weathered a 60% plunge in oil prices in 2020 as countries around the world shut in communities to halt the spread of the coronavirus.