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Chinese traders halt Australian coal orders as customs delays pile up - sources
Source: Reuters
BUSINESS NEWS FEBRUARY 18, 2019 / 7:24 AM / UPDATED 3 HOURS AGO
Chinese traders halt Australian coal orders as customs delays pile up - sources
Muyu Xu, Melanie Burton
4 MIN READ
BEIJING/MELBOURNE (Reuters) - Chinese coal traders have stopped ordering Australian coal as clearing times through China’s customs have doubled to at least 40 days, according to major buyers in China and international coal merchants, resulting in a sharp fall in Australian prices.
The traders and a broker said only cargoes from Australia, the biggest supplier of the fuel to the world’s top consumer, were affected.
“We have stopped ordering coal from Australia because it is unknown how long the restriction will last,” said a manager at a Shanghai-based trading company who usually buys around 400,000 tonnes of Australian coal every month.
Customs clearance typically takes five to 20 days. Now it can be as much as 45 days, said the manager, asking not to be identified as he was not authorized to speak to the media.
-snip-
It was not clear why China had stepped up checks on Australian imports but tension between Beijing and Canberra has grown in recent months over issues of cyber security and China’s influence in Pacific island nations.
-snip-
Chinese traders halt Australian coal orders as customs delays pile up - sources
Muyu Xu, Melanie Burton
4 MIN READ
BEIJING/MELBOURNE (Reuters) - Chinese coal traders have stopped ordering Australian coal as clearing times through China’s customs have doubled to at least 40 days, according to major buyers in China and international coal merchants, resulting in a sharp fall in Australian prices.
The traders and a broker said only cargoes from Australia, the biggest supplier of the fuel to the world’s top consumer, were affected.
“We have stopped ordering coal from Australia because it is unknown how long the restriction will last,” said a manager at a Shanghai-based trading company who usually buys around 400,000 tonnes of Australian coal every month.
Customs clearance typically takes five to 20 days. Now it can be as much as 45 days, said the manager, asking not to be identified as he was not authorized to speak to the media.
-snip-
It was not clear why China had stepped up checks on Australian imports but tension between Beijing and Canberra has grown in recent months over issues of cyber security and China’s influence in Pacific island nations.
-snip-
Read more: https://www.reuters.com/article/us-china-australia-coal/chinese-traders-halt-australian-coal-orders-as-customs-delays-pile-up-sources-idUSKCN1Q714M