China tells coal exporters to cut back

China has asked its coal exporters to reduce exports, as it is in the grip of its worst power crisis since 2004, largely caused by a coal shortage and high prices.

The government is eager to keep more supply back for local generators, many of which have been unable or unwilling to buy expensive coal.
But the move, together with the export tax hike, is unlikely to greatly ease the coal and power shortages in China.

The government did not issue a written order, but made the request orally in a meeting held last week just before it hiked export taxes on coal, but the extent of the export reduction sought was not clear, traders said.

“It was an oral order. I can’t comment on the quantity,” said an executive at one of the firms.

Traders said the order, together with the imposition of a 10 percent tax on coal exports, could see shipments down by two-thirds in September. China exported an average of 4.3 million tonnes of coal a month in the first seven months of the year.

Reuters