Authorities at Guangzhou and Fuzhou ports are reportedly considering clearing some stockpiled imported coal amid high prices and tight domestic supply. Some market players said the move could indicate a possible relaxation of import restrictions. Both ports have exhausted their import quotas in early last month, meaning only some domestic utilities could still purchase small volumes under limited quotas.
Market players said clearing for stockpiled imported coal could weaken domestic prices. However, other market participants are pessimistic on the relaxation, given that customs authorities are still adamant on sticking to the restrictions. An official with an east China-based power utility said the company remained cautious on taking new cargoes as customs authorities would likely limit coal imports at below last year’s level of about 300 million tons.
Imports of Russian coal increased as utilities in the Heilongjiang, Liaoning, and Jilin provinces received additional import quotas in late August amid tight local supply and ahead of the winter restocking. Chinese coal imports, including coking coal, thermal coal, and anthracite, totalled 20.66 million tons in August, 37% lower than the same month last year. In July, total receipts were 21% lower compared to a year earlier.
