Mongolia’s coal export to China rising steadily

Spurred by a ban on North Korean coal by China, Mongolia has been working to fill the gap by increasing exports to China by 79.5 percent from 10.4 million tons in 2016, reported Reuters.

China's coal imports from Mongolia and Russia rose in June as utilities and steel mills sought out less expensive raw materials even as the government tried to curb purchases of foreign fuel. Coal-fired power demand rose in June during a prolonged heat wave in northern China at the start of the peak consumption period.

Data from China’s General Administration of Customs show that Mongolia and Russia have been the biggest benefactors of the ban. Mongolian coal exports to China last month rose 58.9 percent from a year ago to 3.71 million tons, the customs data showed. Russian exports increased 41.7 percent to 2.57 million tons.

The data came after figures earlier this month showed total imports of coal fell year-on-year for the first time since August 2016.

Beijing asked utilities mills in May to reduce their purchases of overseas coal by five to 10 percent in 2017 in an effort to restrict low-quality imports.

Reuters reports that consumption has remained high despite government efforts to restrict imports. In China, the hot temperatures stifled the north and low rainfall last month reduced hydropower output, increasing the reliance on coal to generate power.