Posted on 09 Dec 2021
For November, Mongolia's exports of all types of coal reached an eight-month high of 1.7 million tonnes, or up on month for the second month by 16.5% though still down 45.4% on year, according to the country's latest Customs data.
The on-year slump was to do with the latest COVID-19 containing measures along the Sino-Mongolian border amid rising confirmed cases, and coal trade had been hampered, according to sources.
The containing measures on and then amid outbreaks of COVID-19 cases so far this year, thus, saw Mongolia's coal exports still slumped 43.8% on year to 15.2 million tonnes over January-November with about 93% of the total to China, Mysteel Global understood from the market and the official data.
Mysteel's survey showed that Mongolian coal delivery via the three main checkpoints along the Sino-Mongolian border grew by 4,382 trucks on month to 11,056 trucks over November 1-25, with the increase mainly during mid- to late November when the pandemic control measures eased.
However, the coal Customs clearance volumes varied by checkpoints, as Gashuun Sukhait-Ganqimaodu - the top Sino-Mongolian coal trading conduit - posted continuing recovery in volume in November, while Shivee Khuren-Ceke remained shut throughout November with new coronavirus cases confirmed at the Chinese side close to the checkpoint in mid-October, according to Mysteel's survey.
Mongolia has been China's top coking coal supplier so far this year, and higher export volume, together with growing supply inside China saw the Mongolian coking coal price to China plunge in November, with the price of processed premium Mongolian coking coal with 10% ash, 27% volatile matter and 0.65% sulphur under Mysteel's assessment slumped by Yuan 1,755/tonne ($276/t) on month to Yuan 1,740/t including the 13% VAT as of November 30.
Recent declines in Mongolian coking coal prices, however, has lured some Chinese traders and end-users to buy more since the end of November, a Shanghai-based market watcher shared his observation.
Source:Mysteel Global
