China’s import halt of Australian met coal could come at a cost to Chinese steelmakers

摘要

Singapore—Seaborne metallurgical coal prices have fallen sharply since China moved to temporarily halt Australian coal imports in early October as the implied surplus weighing on the global market in the fourth quarter is priced in. Chinese steelmakers have been obliged to quickly seek alternative supply, and some are trying to resell their cargoes. However, the spot availability of alternative origins is low, forcing Chinese steelmakers to use more expensive domestic coking coals, eroding their profit margins in the process.