China curbs coal imports by stepping up customs checks which cause long processing delays at ports, trading sources said, as the country seeks to support the struggling domestic coal industry. The curbs also come in the form of import quotas and quality restrictions. This policy comes after China’s coal imports hit a record high in the January-May period.
The Fuzhou port would prohibit a cargo chartered by a power utility from mooring if it exceeded the 1.2 million-ton import quota this year, Reuters reported, citing an official with the port. Jiangxi Xinyuan Fuel Corp said it had no import quota, and it had affected its coal purchases. The company imported about 2 million tons of coal last year.
Three traders said the delays resulted in fewer import tenders from customers, especially utility companies in eastern and southern China. One of the traders said imports usually took about a month to clear, but now, it takes up to three months. They also expect ports to implement the quota policy more strictly, although very few cases of import denial were reported at the time.
With such policies in place, analysts expect that China’s coal imports could fall by about 25% in the second half of 2020 from the corresponding period last year.
