Aussie dollar tumbles as China's Dalian port bans Australian coal imports
Customs at China’s Dalian port have banned imports of Australian coal on Thursday, causing the Australian dollar to slide.
Customs at China’s Dalian port have banned imports of Australian coal, with the ban taking effect at the start of February. The ban on coal imports from Australia is indefinite, reports say.
The Australian dollar took a fall on Thursday, after already being on the back foot due to weak Westpac forecasts announced earlier on Thursday.
It comes as major Chinese ports have delayed clearing times for Australian coal to a minimum of 40 days.
According to an exclusive report, an official told Reuters on Thursday that customs at China’s northern Dalian port will cap overall coal imports for 2019 through its harbours at 12 million tonnes.
Five harbours overseen by Dalian customs - Dalian, Bayuquan, Panjin, Dandong and Beiliang - will not allow Australian coal to clear through customs, said the official, however coal imports from Russia and Indonesia will not be affected.
Analysts say the five ports have handled up to 14 million tonnes last year alone, half of which was from Australia.
The Australian dollar falls on the news
Australia being one of the top suppliers of coal, has investors playing it safe, with AUD/USD falling upon the news.
The Australian dollar was down 0.85% at $0.7102 on Thursday afternoon, at time of writing.
The Aussie had already been shaky, as it was whipsawed on Thursday starting with a strong jobs report sending it flying, only to be brought back down by weak forecasts of rate cuts from Westpac bank.
The Aussie dollar initially jumped almost half a cent to $0.7207 before falling back to $0.7155 after Westpac predicted interest rates would be cut in both August and November.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
Trade on commodities
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
1In the case of all DFBs, there is a fixed expiry at some point in the future.
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.