February 19, 2019 - Chinese coal traders have stopped ordering Australian coal as clearing times through China's customs have doubled to at least 40 days, according to major buyers in China and international coal merchants, resulting in a sharp fall in Australian prices.

The traders and a broker said only cargoes from Australia, the biggest supplier of the fuel to the world's top consumer, were affected.

"We have stopped ordering coal from Australia because it is unknown how long the restriction will last," said a manager at a Shanghai-based trading company who usually buys around 400,000 tonnes of Australian coal every month.

Customs clearance typically takes five to 20 days. Now it can be as much as 45 days, said the manager, asking not to be identified as he was not authorized to speak to the media.

The world's biggest coking coal exporter, BHP Group, played down any suggestion the customs delays had any connection to recent Beijing-Canberra diplomatic tensions.

"I don't believe for one moment this is linked to some of the higher level issues of relationships between China and the rest of the world," BHP Chief Executive Andrew Mackenzie said, speaking during a post-earnings conference call.

He said the delays were not targeted against Australia, and reflected China's effort to balance domestic production versus imports.

International traders confirmed the delays.