Decrease in Mongolian Coal Shipments to China
Mongolian Met Coal Shipments to China Decline Amid Winter, But Year-to-Date Numbers Remain Strong
In the week leading up to 12 November, shipments of Mongolian metallurgical coal to China through the Gantsmod land port saw a decline as winter weather took a toll on coal deliveries. According to China-based consultancy Haitong International Securities, daily coal haulage via the Gantsmod port dropped to 951 trucks, marking a 9.7 percent decrease from the previous week.
Despite this weekly decline, the year-to-date numbers tell a different story. During the January-November period, the number of trucks carrying coal through Gantsmod reached 228,600, more than double the amount from the previous year. This indicates a substantial increase in overall shipments over the past year.
The COVID-19 pandemic had previously impacted coal truck hauls from Mongolia through the Gantsmod port in 2019. However, since then, Mongolia has emerged as the largest supplier of met coal to China, surpassing Australia, which had traditionally been a major supplier to the country.
Analysts at Haitong International Securities believe that met coal shipments from Mongolia to China will continue to decrease in the near term due to the winter season. Lower temperatures have been affecting the loading and unloading processes, leading to a slowdown in coal transportation.
As a result, the analysts predict that the number of Mongolian trucks carrying coal to China may not exceed 1,000 in the near future. While the winter weather presents challenges for coal transportation, the overall year-to-date shipments indicate a strong performance for Mongolian metallurgical coal exports to China.
