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.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Speculate 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
You might be interested in…
Find out what charges your trades could incur with our transparent fee structure.
Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.
Stay on top of upcoming market-moving events with our customisable economic calendar.