China's thermal coal imports in June fell 24% on the month to 9.75 million mt, the country's lowest monthly intake since February when imports were severely impacted by the Lunar New Year holiday, according to China customs data released Tuesday.
Falling domestic Chinese thermal coal prices have been applying pressure to the imported coal market, with Platts assessing the CFR South China 15-60 day forward price basis 5,500 kcal/kg NAR at $76.80/mt Tuesday, just above its record low since the assessment started in March.
Indonesian sub-bituminous coal landing in China dropped to 1.74 million mt in June, 50% lower year-on-year.
The future of sub-bituminous coal imports to China -- most of which originates from Indonesia -- remains uncertain, due to a Chinese National Energy Administration draft regulation proposing the banning of lower CV grades.
Chinese imports of lower grade Indonesian material classified as lignite rather than thermal coal -- which would also be affected by any low CV ban -- fell 7% in June to 4.02 million mt, the lowest since September last year.
Overall Indonesian thermal coal shipments to China in June fell 29% on the month and 29% year-on-year to 3.92 million mt, the lowest since February.
June thermal coal deliveries from Australia -- the second largest exporter to China -- were 3.21 million mt, up 19% on a year earlier, but down from 4.63 million mt in May.
Chinese purchases of South African thermal coal recovered to 890,732 mt in June, up 6% on May, but down 4% on a year earlier.
The South African coal was delivered at an average $82.50/mt CIF, according to the data, suggesting that the majority of it was higher ash 5,500 kcal/kg NAR material that trades at a discount to standard 6,000 kcal/kg NAR.
Platts Richards Bay FOB 5,500 kcal/kg NAR 7-45 day spot prices averaged $69.56/mt in June while a shipbroker source estimated Richards Bay-South China current spot Capesize freight at $13.50/mt.
There were no deliveries of Colombian thermal coal to China for a fifth successive month. China imported nearly 2.5 million mt of Colombian thermal material last year, as an arbitrage window opened in May-September.
