The government of Mongolia has prolonged the ban on the country’s coal exports to China on the back of the outspread of coronavirus.
The ban is extended by two weeks to March 15, when it was originally planned to be lifted on March 3. Some traders expected the ban to be prolonged even further if the coronavirus outbreak is worse than expected.
Mongolia was China’s top coking coal seller with 33.8 mt, providing around 45% of the country’s coal needs in 2019.
Recently, the tight coal availability in Australia, Canada, Mozambique, and China has resulted in higher prices for imports despite the overall weak demand for steel.
However, some domestic coal mines in China have restarted production this week due to the decreasing number of confirmed coronavirus cases within the country. Some Chinese steel producers estimated that domestic supplies would return to normal gradually.
