“Chinese seaborne thermal coal imports, including lignite and Vietnamese anthracite, fell to their lowest level since April 2011 in October; a sign that the restrictions China has imposed on imports may be having an effect,” Macquarie Wealth Management said.
“Imports fell to just 146 million tonnes per annum, down 14% month-on-month and substantially lower than the monthly average of 211Mtpa [from] Jan-Sep.
“Restrictions aside, the weak import number can also be explained by four consecutive months of negative year-on-year growth in Chinese thermal coal consumption and very elevated inventory levels at power plants and ports.”
From mid-October China reapplied a 3% metallurgical coal import tax and a 6% import tariff on thermal coal with China having previous axed all tariffs on coking coal imports in 2005 and on thermal coal imports in 2007.
The proposed China-Australia Free Trade Agreement, which emerged last week but still needs to be finalised, will remove the 3% coal tax for Australian metallurgical coal exports while the 6% tariff on Australian thermal coal exports will be phased out over two years.
