China suspends policy on coal import curbs

China has suspended plans to curb imports of poor quality and high sulphur thermal coal, trade sources said on Monday as reported by businesstimes.com.sg.

Utility sources said the National Energy Administration (NEA), which drafted proposals to ban imports of low-grade coal at the request of miners, has postponed such plans following strong opposition from Chinese power companies.

The scrapping of proposed import curbs would support continued large exports from Indonesia, the world's largest coal exporter and a major seller of lignite coal. It will also allow US high-sulphur thermal coal to keep flowing east.

"We have not received any notice of an import ban and it seems the NEA is delaying its implementation. The plan might quietly be shelved," said a procurement manager at one of China's top five power companies. (*)