Limit Coal Import Measures

It is understood that in order to ensure the effectiveness of the coal removal capacity policy, the coal price will be maintained within a reasonable range. From May 2017, the customs clearance time for the import of coal by the State's second-class ports (ports approved and opened by provincial people's governments) will be started. From the first week to three to four weeks; from July 1, 2017, the National Second Class Port banned the import of coal ships berthing.

"All ports are strictly enforced, such as Zhuhai Gaolan Port in Zhuhai and Bafang Port in Fujian." Li Shuhong, a dealer who has engaged in coal import trade for many years, said, "Actually, not only the second-class ports, like Zhuhai Port A type of port, in the second half of 2017, also imposed restrictions on coal imports, mainly to extend customs clearance time.

After the introduction of restrictive measures, China’s coal import volume has also declined significantly.

The data released by the General Administration of Customs shows that from July to November 2017, the coal import volume was 11.514 million tons, which was 5.65 million tons less than the same period of last year.

At present, during the peak winter season, coal consumption continues to increase. According to the data, as of January 2, 2018, the average inventory of the six major coastal power plants was 10.224 million tons, with an average daily consumption of 757,000 tons, which was the highest level in the same period since 2010. The average number of available days was 13.51 days, slightly higher than the inventory of nearly six years. The lowest point is 13 days. According to the requirements of the 20-day minimum inventory of the National Development and Reform Commission's inventory management system, a gap of 4.91 million tons remained.

To ease the tight supply of coal, the National Development and Reform Commission proposed measures to strengthen daily monitoring, increase effective supply, and strengthen transportation security. The National Energy Administration also issued a document request but even so, the effect is not obvious. According to the data, in November 2017, the country’s output of raw coal was 299.98 million tons, a decrease of 2.7% year-on-year. For the first time in the past eight years, the monthly output for November was below 300 million tons.

Han Zhenguo, an analyst at Founder Securities, pointed out that near the end of the year, some large mines such as Yulin Mine began to stop production and overhaul, which had a greater impact on supply. The coal price in the main producing areas began to stabilise and rise; the tension of railway transport capacity superimposed on the transport of trucks was affected by snowfall, making the transfer port The limited supply of goods to Hong Kong has resulted in a tight supply of coal as a whole.