China coal

Buyers typically source three main categories: Thermal Coal (Steaming Coal), primarily used for power generation and cement production; Coking Coal (Metallurgical Coal), essential for steel manufacturing due to its high carbon content and caking properties; and Anthracite, valued for its high energy density and low impurity levels, often used in chemical industries and water filtration.

To ensure quality, you must specify the Gross Calorific Value (GCV), typically measured in kcal/kg, and the Total Moisture (TM) content. Additionally, define limits for Ash Content, Volatile Matter (VM), and Sulphur Content, as high sulphur levels can lead to environmental non-compliance and equipment corrosion.

Prioritize suppliers who provide SGS or CCIC (China Customs Inspection) third-party inspection reports. Ensure the coal meets the GB/T standards (Guobiao) for coal quality. For international trade, verify that the supplier adheres to ISO 17225 or specific regional environmental regulations regarding mercury and fluorine content.

Coal is a bulk commodity requiring Capesize or Panamax vessels for cost-efficiency. It is critical to monitor the Self-Heating Property of the coal to prevent spontaneous combustion during long-term storage or transit. Ensure the supplier uses proper ventilation and temperature monitoring protocols at the loading port.

Coal is a strategically regulated resource. Buyers must confirm that the supplier possesses a valid Export License and check the current Export Tariff rates, which can fluctuate based on domestic supply-demand balance. It is recommended to source through reputable platforms like Made-in-China.com to find verified exporters with proven track records.

Given the high transaction value, avoid 100% advance payments. The industry standard is a Letter of Credit (L/C) at sight, which ensures payment is only released upon the presentation of shipping documents and a Certificate of Quality and Quantity issued by an independent surveyor at the loading port.

Implement a 'Price Adjustment Formula' in the contract. This clause allows for a pro-rata price reduction if the Calorific Value or Moisture levels deviate from the agreed-upon specifications upon arrival at the discharge port, based on a joint inspection.

While FOB (Free On Board) gives the buyer more control over freight costs and vessel scheduling, CFR (Cost and Freight) is often preferred for new buyers to simplify logistics. Ensure the contract clearly defines the Laytime and Demurrage terms to avoid unexpected costs during port congestion.