Mongolian coal supply to China has come under greater scrutiny by Chinese market participants amid the latest coronavirus containment measures implemented on 16 March at the Ganqimaodu border.

The new border checks include a COVID-19 test for the drivers each time they enter China and a reduction in the number of vehicles allowed to 50 per day from 200 earlier.

The latest containment measures would translate to lesser coal volumes being transported into Mongolia daily, with traders already raising prices by Yuan 20-30/mt for unwashed coals.

Industry sources reported less than 50 vehicles crossing into China on 18 March and they expect the number to fall drastically in the coming days.

Despite the slight increase in prices, market sources said that sentiments have not turned bullish yet, as demand for domestic coking coal and coke have taken a backseat in March.

Mongolia coal supply to China shared a big chunk of China’s overall coking coal imports in 2020 amid the country’s import restrictions on Australian cargoes. This implies the supply and prices of Mongolian coals are also being closely monitored, alongside domestic coking coal prices. Source (S&P Global)