Coal news and updates

China unlikely to opt for low-grade imports ban

March 20: Even as the possibility of China banning low-grade thermal coal imports renews market speculation once again after a gap, Indian trading sources said such a prohibitive action is unlikely to happen due to the dependence of that country's thermal power utilities on such imports.

"This is quite unlikely to happen. If China goes for it this time, a lot of industries, including the country's thermal power sector, could be severely impacted," said a Kolkata-based coal importer.

Instead of a ban, Chinese authorities could consider imposing a clean energy cess, another source said.

ICMW had reported in June 2013 that China will not impose the ban on import of low grade coal and it was proven correct as the country had imposed restrictions only on imports of extremely low grade lignite coal, which in any case was not being imported by it.

However, recent reports said the Chinese authorities are again weighing the option in view of the public outcry against environmental pollution from thermal power and steel sectors.