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China port bans Australian coal imports, sets 2019 quota

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BEIJING: Customs at China’s northern port of Dalian has banned imports of Australian coal and will cap overall coal imports from all sources to the end of 2019 at 12 million tonnes, an official at Dalian Port Group said on Thursday.


The indefinite ban on imports from top supplier Australia, effective since the start of February, comes as major ports elsewhere in China prolong clearing times for Australian coal to at least 40 days.


Coal is Australia’s biggest export earner and the Australian dollar tumbled on the news, falling more than 1 per cent to as low at $0.7086.


Five harbours overseen by Dalian customs — Dalian, Bayuquan, Panjin, Dandong and Beiliang — will not allow Australian coal to clear through customs, said the official. Coal imports from Russia and Indonesia will not be affected.


“I’m aware of unconfirmed and unsourced media reports and have asked our Ambassador in Beijing to urgently clarify their veracity,” said Australia’s Minister for Trade Simon Birmingham.


“We continue to engage closely with industry on matters of market access...China is a valued partner of Australia and we trust that our free trade agreement commitments to each other will continue to be honoured.”


Birmingham also said that Australia’s exports of coal to China in the fourth quarter of 2018 were higher in volume and value than in the same period in 2017.


The Dalian ports handled about 14 million tonnes of coal last year, half of which was from Australia, said Gu Meng, an analyst at Orient Futures.


The Dalian official declined to be named due to the sensitivity of the matter. Neither Dalian customs nor the national General Administration of Customs immediately responded to a request for comment.


The Dalian official said he was not given a reason for the ban on Australian imports.


However, it follows simmering tensions between Beijing and Canberra over issues such as cyber security and China’s influence over island nations in the Pacific Ocean. Australia recently revoked the visa of a prominent Chinese businessman further straining ties.


Asked if the ban was related to bilateral tensions, Geng Shuang, a spokesman at China’s foreign ministry, told reporters on Thursday that customs were inspecting and testing coal imports for safety and quality.


“The goals are to better safeguard the legal rights and interests of Chinese importers and to protect the environment,” he said, adding that the move was “completely normal”.


Australia’s New Hope Coal declined to comment. Yancoal said it will not be impacted by the Dalian ban as it does not ship to the port.


Glencore directed queries to the Minerals Council of Australia, which declined to comment.


Beijing has been trying to restrict imports of coal more generally to support domestic prices.


A Beijing-based coal trader said Dalian had cleared about 6 million tonnes of coal in January that had been delayed since late 2018 as China slowed customs clearance to curb imports. — Reuters


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