China allows four firms to resume Aussie coal imports - sources (updated)

Datang group

05/01/2023 24:47

(Repeats story with no changes to text)
    By Muyu Xu and Chen Aizhu
       SINGAPORE, Jan 4 (Reuters) - China's state planner has
allowed three central government-backed utilities and its top
steelmaker to resume coal imports from Australia, the first such
move since Beijing imposed an unofficial ban on coal trade with
Canberra in 2020.
    The partial easing of the coal import ban comes after the
Australian and Chinese foreign ministers met last month seeking
to reset the frosty diplomatic relations between the two
nations.
    The National Development and Reform Commission (NDRC)
summoned China Datang Corp, China Huaneng Group, China Energy
Investment Corporation and China Baowu Steel Group on Tuesday to
discuss the resumption of coal imports from Australia, two
people familiar with the matter said.
    The firms will be granted permission to purchase Australian
coal only for their own use, the people said. 
    The NDRC did not respond to a request for comment. The four
companies named did not immediately respond to a request for
comment outside office hours. 
    China imposed restrictions on Australian commodities
including coal and wine just over two years ago after relations
between Beijing and Canberra turned sour over several political
and public health matters.
    Australia used to be the second largest coal supplier to
China before the ban, accounting for nearly 30% of China's coal
imports or more than 70 million tonnes of supply. Chinese buyers
favour high-quality thermal coal and coking coal.
    "Some (Chinese) traders have started to ask for prices of
the February cargoes after the NDRC meeting," one of the people
said, adding that the current Australian coal prices are still
attractive to Chinese buyers.
    Australian thermal coal with heating value of 5,500
kilocalories was traded at about $135 a tonne on a free-on-board
basis as of Jan. 3, and is assessed to be traded at around 1,150
yuan ($167.18) a tonne when reaching China. 
    That would be slightly cheaper than China's domestic coal
prices of about 1,200 yuan, traders said.
    China's most-active coking coal futures delivery  DJMK3 
closed down 2.32% earlier on Wednesday in anticipation of
increasing supply from Australia.
    Baoshan Iron & Steel  600019.SS , a listed subsidiary of
Baowu Group, last month told a Shanghai Stock Exchange investor
platform that "importing Australian coal will have a positive
effect on the company's coal procurement and structure
adjustment, and will lower the logistic costs at our Zhanjiang
base". 
    ($1 = 6.8788 Chinese yuan renminbi)
 (Reporting by Muyu Xu and Chen Aizhu; Editing by Jan Harvey)
 ((muyu.xu@thomsonreuters.com; +65 9829 1075;))