Since the beginning of the year, coal prices have been on a downward trend. As of today, the market price of coal stands at $102 per ton.
Our country sells mining products through the stock exchange. The most recent sale was on January 16, when the state-owned “Erdenes Tavantolgoi” company sold low-grade coking coal in two lots at $48.8 per ton. The day before, on January 15, they sold high-grade coking coal at $122 per ton in a transaction involving three lots, totaling 19,200 tons, to China.
According to China’s customs data, the country’s largest coal importer, Russia, has reduced its purchase share since the beginning of the year, while coal imports from Australia have significantly increased.
Last year, China’s coal imports reached 547.2 million tons, accounting for 41% of global coal trade. This contributed to the increase in coal prices on the global market. According to the International Energy Agency, China’s coal demand has increased by 50% over the last five years, which has had a significant impact on coal prices.
According to official sources, although coal shipments from Mongolia were proceeding normally, the backlog at the Gantsmod border was caused by China’s Lunar New Year festivities, resulting in a 3-day delay before normal operations resumed.
However, China continues to stockpile coal at the Gantsmod border crossing, and as of now, there have been no further shipments or imports. This suggests that China may temporarily halt coal purchases from Mongolia.
Currently, “Erdenes Tavantolgoi” has opened trading for coking coal on the mining stock exchange. However, there has been no offer from China, and in several recent transactions over the past week, no proposals have been received, and the trades have been closed without any purchases being made.
Source: https:eguur.mn/569253
