Mongolian coal exports hit 8-month high in November

According to the latest data from the country's customs, in November, the export of all types of coal from Mongolia reached an eight-month high of 1.7 million tons, which is 16.5% more than in the second month in a month, although it is still 45.4% less than last year.



The year-on-year decline was due to the latest COVID-19 containment measures along the Sino-Mongolian border amid rising confirmed cases, and coal trading was hampered, sources said.

Containment measures during the COVID-19 outbreaks and then amid the COVID-19 outbreaks this year have thus resulted in Mongolia's coal exports still falling 43.8% year on year to 15.2 million tons for January-November, with about 93% of the total volume accounted for by China, Mysteel Global understood from the market and official data.

A Mysteel study found that coal shipments from Mongolia through three main checkpoints along the Sino-Mongolian border rose by 4,382 trucks per month to 11,056 trucks over the November 1-25 period, with this increase seen mainly in mid to late November. when the response to the pandemic was weakened.

However, customs clearance volumes for coal varied across checkpoints, as Gashuun Suhait Gankimaodu, the leading Sino-Mongolian coal trading channel, experienced a continuing recovery in November, while Shiwei Khuren Tseke remained closed in November. during November with confirmation of new cases of coronavirus at checkpoints. According to the Mysteel study, the Chinese side is located near the checkpoint in mid-October.

Mongolia has so far been the main supplier of coking coal to China this year, and due to increased export volumes along with rising supplies within China, the price of Mongolian coking coal to China fell in November amid prices of processed Mongolian premium coking coal from 10% ash. Mysteel estimates 27% volatiles and 0.65% sulfur fell by 1,755 yuan /ton ($ 276 /t) in the month to 1,740 yuan /ton, including 13% VAT as of November 30.

However, the recent decline in coking coal prices in Mongolia has prompted some Chinese traders and end users to buy more since late November, a market watcher from Shanghai shared his observation.