Met coal quality differentials evolve on policy, market shifts

摘要

China’s National Development and Reform Commission in mid-November imposed further port restrictions on coking coal and thermal coal to last until the end of 2018 at ports across China. Evidently, this move resulted in a slowdown in buying activities as market participants needed assurance and clarity to buy confidently. As ports reopened on January 1, 2019, market participants were aware that they needed to utilize their import quotas efficiently in light of unpredictable political moves by the Chinese government. This may then have an impact on the differentials, or spreads, between each type of coking coal.