China to slash H2 coal imports to back domestic miners, analysts say

IMPORTER FRICTION

Over the past month or so, at least three traders said, coal importers have already seen customs clearing processes extend to 40 days from around a week usually, with new conditions set for importers since March.

Still, the limits did little to slow imports during the first four months of 2020, which jumped 26.9% from the same period in 2019 to 126.73 million tonnes, customs data show.

Sources expect further steps to slow imports, though there is no sign that China plans to single out specific suppliers.

Some traders had speculated that recent trade tension between Beijing and Canberra over barley and meat shipments could spill into coal, for a repeat of last year's delays of Australian shipments of the fuel.

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But analysts said this year's moves are targeted more broadly.

"If the aim is to control imports, the Chinese may utilize port restrictions, coupled with determining which parties are allowed to import coal," said Pat Markey, managing director of Sierra Vista Resources in Singapore.

"Singling out Australian imports won't completely accomplish the goal."