亿电竞

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Fitch: China亿电竞平台's steam coal supply growth may put pressure on coal exporters
Time: 2019/5/6 9:47:03

China亿电竞平台 Coal Resources Network viewpoint ,   Import and export ,   international 2019-05-06 09:16:53

     

Recently, Fitch Ratings and the亿电竞 British Commodity Research Institute (CRU) said that the亿电竞 growth of China亿电竞平台's steam coal supply may lead to furthe亿电竞r tightening of coal imports by the亿电竞 Chinese government, which will put pressure on the亿电竞 price of seaborne coal and increase the亿电竞 uncertainty of coal exporters' orders. Among the亿电竞m, the亿电竞 most affected are Indonesian and Australian coal exporters.


Due to weak domestic demand and increased coal supply, the亿电竞 tight supply situation in China亿电竞平台's coal market has eased. China亿电竞平台's coal demand has declined due to the亿电竞 decline in residential electricity consumption during the亿电竞 end of winter heating period, that is, in the亿电竞 middle of March, and the亿电竞 increase in hydropower supply due to heavy rainfall in South China亿电竞平台.


China亿电竞平台's domestic coal supply has gradually improved in recent quarters as a result of slower de capacity policies and the亿电竞 government's acceleration of new capacity to drive down fuel costs at power plants, the亿电竞 commodity research institute said. Coal inventories in China亿电竞平台's six largest power plants increased to 16 million tons in late March, 13% higher than the亿电竞 average of 14.1 million tons in 2018.


The亿电竞平台 increase in domestic coal supply may prompt the亿电竞 Chinese government to tighten its steam coal import control, which means that the亿电竞 uncertainty of coal exporters' orders will increase, and the亿电竞 risks faced by maritime coal suppliers to China亿电竞平台, mainly those from Indonesia and Australia, will increase.


Since 2017, the亿电竞 Chinese government has adjusted its coal import policy from time to time. In recent months, the亿电竞 customs clearance of Australian steam coal in Chinese ports has been slow, and the亿电竞 customs clearance time of Australian coal in some ports has been extended to 40 days, far more than the亿电竞 normal 5-20 days.


However, seaborne coal remains price competitive compared with domestic coal in China亿电竞平台, but delays in customs clearance may make Chinese consumers reluctant to use seaborne coal, especially when domestic coal supply is sufficient.


Australian coal producers may face the亿电竞 risk of order cancellation and may be forced to resell coal originally exported to China亿电竞平台 to othe亿电竞r countries to some extent. This could lead to weak prices in the亿电竞 seaborne coal market, especially the亿电竞 medium calorific value (about 5500 kcal) coal that Chinese coal importers usually buy from Australia.


It is reported that Indonesia's coal exports to China亿电竞平台 are less affected by China亿电竞平台's recent coal import control measures, but Indonesian coal producers may still face pressure to develop new markets due to factors such as the亿电竞 overall demand for China亿电竞平台's maritime coal declines and Indonesia's domestic coal production increases but domestic demand is lower than expected.

 
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