Australian thermal coal for power generation and
metallurgical coal for steelmaking are favoured by Chinese
consumers for their high-quality. China's coal demand is
forecast to rise in the upcoming months amid an expected
economic rebound after Beijing rolled back its draconian
zero-COVID strategy. About 72,000 tonnes of metallurgical coal was loaded on to
bulk vessel Magic Eclipse at Hay Point, Australia, on Jan. 23
and is expected to arrive at the southern Chinese city of
Zhanjiang in Guangdong province next week, Refinitiv and Kpler
shiptracking data showed.
China's top steelmaker Baowu Group bought the cargo,
according to a trader familiar with the deal and the
shiptracking data.
Baowu is one of the four government-backed firms given
permission from China's state planner in early January to
purchase Australian coal. The company has 12.25 million tonnes
of annual steelmaking capacity at its Zhanjiang base. Baowu did not immediately respond to Reuters' inquiry
seeking for comment.
Another bulk vessel, the BBC Maryland, is carrying about
12,000 tonnes of thermal coal from the Australian port of
Newcastle and heading to the eastern Chinese city of Changshu,
Kpler data showed. The cargo is scheduled to arrive on Feb. 10
but it is not immediately clear who the buyer was.
China Energy Investment Corp purchased at least two cargoes
of Australian coal, Reuters reported in early January. China's
local media reported that the other two firms given approval to
buy Australian coal have also placed orders. Other Chinese utilities and steelmakers that are not on
Beijing's list of approved importers are still waiting to resume
imports.
Customs officials in five major eastern and southern Chinese
cities have said that there is no specific requirement for
companies importing Australian coal during the customs
declaration process.
However, it was unclear if the customs authorities would
clear cargoes purchased by companies other than the four
approved ones.
Australian thermal coal with a heating content of 5,500
kilocalories was assessed at about $132 a tonne on a
free-on-board basis last week, down from about $137 a tonne in
early January, according to traders.
Premium low volatile coking coal for delivery on a cost and
freight basis to China was assessed at about $320 a tonne last
week, up from $315 in early January, the traders said.
(Reporting by Muyu Xu; Editing by Florence Tan and Christian
Schmollinger)
(Repeats story with no changes to text)
By Muyu Xu
SINGAPORE, Jan 30 (Reuters) - China is set to receive at
least two cargoes of Australian coal in early February,
according to traders and shiptracking data, the first since an
unofficial ban on imports in place since 2020 was lifted earlier
this month.
Coal traders will be paying attention to how easily the
shipments pass customs for signs that the informal ban is truly
over and in the hopes of sending more Australian coal to China.
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