International coal price ties in with the lack of domestic coal price import advantage

A few days ago, media reports said that the international coal price fell across the board in the early stages, and domestic and foreign coal prices were up to 100 yuan. Based on this, the domestic power plants switched to buy imported coal to reduce losses, and many coastal power plants began to increase the amount of imported coal overseas.

However, the data released by China Merchants Securities shows that on May 16th, the Australian BJ spot price was 123.15 USD/ton, which was approximately 800.5 RMB/ton. Judging from this price, international coal prices have been close to tying domestic coal prices, hopes of power plants relying on imported coal to reduce losses have been shattered, and the possibility of relying on imported coal to ease domestic electricity coal shortages has also diminished.

The coal industry weekly report issued by China International Capital Corporation also confirmed the above statement. According to the company’s weekly report, due to the fall in international oil prices, the rebound of the US dollar index and the gradual return of Australian coal mines, despite the slight drop in international thermal coal prices, Newcastle Harbor thermal coal (6,000 kcal/kg) FOB prices fell by 3.2% to US$118.7/ T, but if you consider the value-added tax, shipping costs and other factors, the price of imported thermal coal is still higher than domestic.

Although the “price difference” in early May has ceased to exist, the enthusiasm of domestic power plants to import overseas coal remains unabated. "Daily Economic News" reporter learned from the General Administration of Customs that a number of customs offices have opened special windows to ensure the rapid clearance of imported coal.

Since March, due to tight coal supply, Zhejiang has suffered the most severe tension in seven years, and companies are facing power curtailment. As an important port to ensure coal transportation in power plants in East China, Zhoushan’s coal imports have increased significantly. According to reports, in order to ease the severe situation of power shortage in Zhejiang, Zhoushan Customs launched a series of rapid customs clearance measures for imported coal, including “in advance declaration, cargo inspection and release” and “one-stop special window”.

“Now, enterprises are using large amounts of coal and want to get coal early. The Customs has opened a special window, and all customs clearance procedures can be handled at this window. It is indeed very convenient. It is generally ten minutes from the customs clearance to release of a coal ticket. "The terminal business manager Yang Chaohui told reporters.

According to statistics, from March to the present, Zhoushan Customs has passed inspection and release of 224,300 tons of imported thermal coal through green windows, effectively guaranteeing stable supply of coal for production of peripheral power plants.

On May 17, the Heihe Port Imported Russian Coal 2011 Cooperation Forum was held in Heihe City, Heilongjiang Province. According to the reporter's understanding, this forum has demonstrated the feasibility and rationality of opening up a major channel for coal trade between China's Heihe and Russia's market. According to the relevant person in charge of Heihe Port, all participating parties are now trying their best to open the channel and reaching a consensus on the import of Russian coal.