Although there is no confirmation yet, BHP has indicated that some of its shipments had been deferred by Chinese customers.
But it remains unclear if there is a ban in place or if it’s the common event of steel mills reaching the top the of their import quotas.
The China market is worth about $9 billion to Queensland.
RBC Capital Markets said the restrictions had sent Australian premium metallurgical coal down 10 per cent for the week and were now below $US130 a tonne ($A182). Thermal coal prices have fallen further and were down 16 per cent.
The company said China’s importers were now looking to defer or re-sell their cargoes. A significant spread has also emerged between the domestic price and the import price.
Domestic producers are receiving about $US180 a tonne compared with the import price of just below $US130.
India had provided some offset, according to RBC. It’s metallurgical coal imports were up 35 per cent in August.Jump to next article