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Why is China not buying Australian coal?
12, 2020. China is facing its worst power crisis in years due to a coal shortage. Late last year, China stopped buying Australian coal. That happened as trade tensions between the two countries soared after Canberra backed a call for an international inquiry into Beijing’s handling of the Covid-19 outbreak.
Why is there no coal in China?
China’s coal shortage worsened in September, which prompted local authorities to abruptly announce power cuts for many factories. As a result, factory production dropped, prompting several economists to reduce their forecasts for GDP growth.
Who is buying Australian coal now?
India is buying Australian coal that’s been stranded inside China for months, according to people who have made the purchases, spotlighting how geopolitics is complicating Beijing’s battle against an energy supply crisis.
Where does Australia’s coal go?
About 70\% of coal mined in Australia is exported, mostly to eastern Asia, and of the balance most is used in electricity generation.
Where is Australian coal exported to?
As BHP expressed it in its annual results report, ‘Australia was both the largest seaborne exporter of metallurgical coal and the largest seaborne supplier to the clearing market, China.
Where is China buying coal from?
China imported about 3.7 million tons of thermal coal, the primary fuel for electricity production, from Russia in September, customs data showed. That’s up 28\% from August and more than 230\% higher than a year ago.
Where does China buy its coal?
China fulfills its demand for coal by purchasing it from regional neighbors. In 2019, about 96.3 percent of China’s coal imports came from Australia (77 million metric tons), Indonesia (47.8 million metric tons), Mongolia (36.1 million tons), and Russia (29.2 million metric tons).
Does China export coal?
Export value of coal from China 2009-2019 In 2019, China exported coal worth approximately 933.8 million U.S. dollars.
Why did China just ban coal imports from Australia again?
This was the second time this year that China has banned Australia coal imports. In May, after the announcement of beef and barley sanctions, China’s National Development and Reform Commission (NDRC) prohibited the purchase of Australian thermal coal to boost domestic coal prices.
What is happening to Australian coking coal?
The price of coking coal using seaborne delivery has fallen sharply since the start of the ban on Australian coal imports, making it more attractive to Chinese steel mills. Australia, in the interim, is working hard at finding alternative markets for its commodities exporters with no end in sight to its deteriorating relationship with China.
Are China’s coal quotas exhausted?
Coal import quotas at some Chinese ports have now been exhausted for 2020. “There are several vessels carrying Australian coal waiting at Chinese ports for more than a month now as generally custom clearances have been very slow,” said Deepak Kannan, a thermal coal analyst S&P Global Platts.
How bad is the China-Australia conflict really for Australia’s economy?
Marcel Thieliant, senior Australia and New Zealand economist, concurred. While Australia’s non-iron ore exports to China have slumped by 40\% over the past year, “coal miners have been able to divert their shipments to other countries,” he said. “The upshot is that the conflict isn’t as damaging to Australia’s economy as many think.”