Quality watchdog in southeastern China’s Guangdong province, one major destination for imported coal, has made it clear that thermal coal used for power generation is not included in the so-called "sanmei", or scattered coal, targeted in new quality standards to be implemented next month. 

In a conference on the soon-to-be-implemented new standards, the Guangdong Administration of Quality Supervision, Inspection and Quarantine said "sanmei" refers to coal used for residential purposes like honeycomb briquette, sources said.

The new standards, therefore, would have limited impact on thermal coal imported into the Pearl River Delta region, traders said.

China has said it would ban the consumption of "sanmei" with ash above 16% and sulphur above 1 in the Beijing-Tianjin-Hebei metropolitan area, the Yangtze River and the Pearl River delta regions, from January 1 next year.

No official authorities had said publicly about this, since the National Development and Reform Commission released the standards in mid-September.

This had caused a whirlwind in the import market, as some market participants speculated on whether thermal coal for power generation is categorized as "sanmei".

Most insiders considered it should include mainly the coal used for small end-users such as hotels or residential homes rather than power plants or other industrial users.

Although the General Administration of Quality Supervision, Inspection and Quarantine has not elaborated on this officially, insiders said the Guangdong AQSIQ should have received directives and the definition thus is applicable across the country.

Under the new measures, importers are required to declare the final consumption area and end user to the customs authorities, otherwise the transport distance would be deemed as surpassing 600 km and the quality of imported coal must meet stricter requirements, the Guangdong AQSIQ said.

Imported coal, as well as domestic coal, should also meet relevant standards on trace elements, including arsenic, chlorine, fluorine, mercury and phosphorus, in addition to ash and sulphur requirements.

Cargoes failing to meet those standards would not be allowed to be imported into China for sales and long-distance transportation, the Guangdong AQSIQ said.