China's utility company Fujian Guohai has reportedly canceled seaborne coal shipments scheduled to arrive in April. Market sources said this step was taken following changes in utility procurement plans and affected up to 1 million tons of coal from Russia and Indonesia. This move is also expected to support the prices of domestic coal, the sources added.
The sources noted that a pocket of high-CV Russian coal and 600,000 tons to 1 million tons of low-CV Indonesian coal are awarded the tender for April shipments. They added that a total of 1.6 million -2 million tons of seaborne coal due to arrive in May to June could face a similar type of cancellation.
Guohai is a local utility under China Guodian Corporation, which merged with China's coal miner Shenhua in November 2017. Shenhua is a Chinese coal miner which sets the domestic coal benchmark.
