Chinese steelmakers remained without Mongolian coke due to coronavirus
Mongolia has suspended coal exports from 10 February to 2 March. This happened after the country was confirmed two cases of infection with coronavirus in Bandura 120 km from the Chinese-Mongolian border.
due To the fact that both cases of coronavirus were near the border, government officials and residents of the province of South Gobi in Mongolia, insisted on an immediate cessation of exports to prevent the further spread of infection within the country.
Chinese sellers Mongolian coal confirmed that all exports of Mongolian coal into China were stopped from February 10.
the Cessation of exports follows more stringent checks at the borders between the two countries in late January, including railway and automobile communication. The border authorities of Mongolia has introduced temporary restrictions on the movement on the border with China, giving passage only to foreigners or commercial vehicles with licenses from the government.
China gets about 30-50% of its imports of coking coal from Mongolia. Stricter port control to China in December 2019 has restricted the export of coal from Australia, raising Mongolian imports to more than 90% of the total China's imports of coking coal this month.
China imported 27.7 million tonnes of coking coal from Mongolia in January-December 2018, which is almost at the level of 28.2 million tonnes imported from Australia during the same period.
This may give the Russian coking coal producers the opportunity to try to take greater market share in China, said the Singapore trader, because the quality of most of Mongolian coal to some extent comparable to the quality of Russian coking coal.
"Customers who depend on Mongolian coal was previously taken steps to find alternatives, so I don't expect it will be a serious event for buyers," said a trader from Beijing.