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Thursday, 16 March 17
CHINA IMPOSING TOUGHER CONTROLS ON LOW-QUALITY COAL IMPORTS
Coal ExcavatorChina is ramping up controls on imports of low-quality coal due to concerns about smog and overcapacity in the world’s top coal consumer, a government official said on Wednesday, said Reuters.

According to Reuters, Zhi Shuping, head of the Administration of Quality Supervision, Inspection and Quarantine which oversees imports safety sash said, “As long as coal meets standards, we don’t forbid imports, but we are imposing controls on low-quality coal imports. If we let all kinds of coal import into the domestic market, it will hit the domestic market.”

Any action on imported coal by China will affect Indonesian coal exports as well as its prices. If China puts restrictions on low calorific value coal imports or introduces tougher inspections, might affect the Indonesian coal price in the short term. Indonesia is currently the world's leading exporter of thermal coal and one of the leading supplier of coal into China. 

On the other hand, any restriction on low calorific coal imports into China will also send domestic prices higher from current levels.

International coal prices have improved significantly since mid of last year due to China’s restriction on operating hours on Chinese coal mines. Indonesian coal prices also drastically arisen due to sudden demand increase from China particularly for low calorific value coal since Q2’ 2016.


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