en.sxcoal.com reported that the largest coal importer in southwest China’s Guangdong province Chaozhou City Yatai Energy Co Ltd has stopped buying coal from abroad due to heavy losses caused by steep price fall and mounting stocks of the fuel it has imported.

Trade sources told China Coal Resource that “With some 1 million tonnes of imported coal in stock, the company may suffer about CNY 200 million of book loss, considering the recent slump in international coal prices.”

As per report “The company, which says it imports about 12 million tonnes coal annually on average, may have bought 13 million tonnes to 15 million tonnes coal from overseas countries in 2011 or 7% to 8% of China’s total imports.”

One Guangxi based trader disclosed that the price for Yatai Energy’s imported Columbian coal of 5500 Kcal/kg at Fangcheng port has fallen to CNY 700 per tonne.

Beside Yatai Energy, several other large coal traders in the province could have suffered losses above CNY 100 million from high inventories amid sharp price drop and thus have to choose to default on import and domestically purchase contracts.

Price of thermal coal at Australia’s Newcastle, the Asian benchmark,
now has fallen down to $89/t, while South African coal of 6000 Kcal/kg is actually settled at $80/t plus, falling nearly 200 yuan/t ($31/t), one source noted.

Source - en.sxcoal.com

(www.coalguru.com)