The Mongolia-China border crossing of Ganshuun Sukhait, the gateway for Mongolia coking coal to China, is expected to reopen on 2 March.
Mongolian coal grades have long been closely compared to Australia’s Rangal HCC as they share similar specifications such as coke strength after reaction, volatile matter and ash content. Others said the reopening of the border crossing may not provide the relief to seaborne coking coal prices.
A Northern China coke producer said that even as the borders reopen in March, washplants and truck drivers in Inner Mongolia may not necessarily resume full operations. “While there are some washed Mongolian coals entering China, a big chunk of these coals are unwashed,” he said, estimating washed Mongolia coals to be about 20%-30% of Mongolia coking coal exports to China.
Some Northern Chinese end users in recent weeks turned to Jingtang port amid the squeeze in domestic Chinese and Mongolian coking coal, resulting in higher port stock prices. Platts last assessed Premium Low Vol ex-stock Jingtang at Yuan 1,500/mt Thursday, up Yuan 140/mt month on month, and HCC 64 Mid Vol ex-stock Jingtang at Yuan 1,340/mt, up Yuan 80/mt month on month.