02 Jul 2020
The annual import quota for seaborne coking coal at China’s major coking coal port, Jingtang has been nearly exhausted and the authorities are temporarily halting customs declarations, sources told S&P Global Platts July 1.
This may have an immediate impact on demand from end-users in Northern China for imported coal because they have been taking advantage of seaborne coking coal being more competitively priced than domestic and buying large volumes.
Market participants added that more than 20 vessels are awaiting to clear customs at Jingtang and there are still vessels en route there, which will quickly eat into the quota left for July-December, resulting in a swift move by the port authorities to control the volumes imported.
“Jingtang is one of the most important coking coal ports in Northern China, almost one-fifth of seaborne cargoes go to Jingtang for port clearance. Since 2020’s import quota is expected to be almost exhausted, I think any potential demand will be diverted to end-users based in Southern or Northeastern China,” a Chinese trader said.
Source : https://www.hellenicshippingnews.com