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China’s May coking coal imports fall 68% on year to 1.88 mil mt, 6-year low

China’s coking coal imports in May plunged 68% year on year to 1.88 million mt — the lowest since March 2009 — as volumes from Australia and Mongolia plummeted, according to data released by the General Administration of Customs.

May imports were nearly half of April’s 3.75 million mt.

Imports from top supplier Australia fell 67% year on year and fell 43% from April to 970,000 mt in May.

Coking coal imports from Mongolia, China’s second-largest supplier, fell 66% year on year and fell 59% from April to 534,206 mt in May.

Russian imports were 274,354 mt in May, down 48% from a year ago but up 20% from April.

China’s appetite for higher-quality met coal imports to feed its massive coastal steel mills from 2007-2013 drove prices to record highs.

But its appetite for imports has ebbed due to a feeble steel sector and government mandates to protect its domestic coal industry.

Over the first five months of this year, China’s coking coal imports fell 35% year on year to 16.56 million mt.

The sharp decline in May import was unexpected as there had been reasonable spot trading liquidity for mid-to-end-April cargoes, according to market participants.

Platts observed about 2 million mt of mid-to-end-April laycan hard coking coal volumes, meant for May arrival.

“This year’s volumes are definitely lower, but the likely explanation for such a low May number is that many shipment loadings could have been delayed,” a Jingtang port stocks trader said.
Source: Platts