Imports from Mongolia, primarily coking coal, more than doubled in 2023 from a year ago, reaching 69.97 million tons, the Chinese customs data showed.

Importers of Russian and Mongolian coal must pay a most-favoured nation tariff rate of 3%-6% from this month, while Australian and Indonesian coal is exempted under free trade agreements.

However, analysts do not expect the import tariffs to significantly affect China’s imports in 2024.

Macquarie analysts said in a research note that 90% of China’s 2023 coking coal import volumes are subject to import tariffs, but “Russian and Mongolian producers are likely to absorb the additional costs”