China increases imports of Australian coal Ship’s crew

From Bloomberg News

(Bloomberg) – Australian coal continues to be a hit with Chinese buyers, putting pressure on domestic prices, with new deliveries hitting the highest level since Beijing’s import ban in autumn 2020.

That ban ended earlier this year and China’s appetite for the high-quality coal supplied by Australia is growing amid concerns that rising domestic production contains too much low-grade fuel. According to China Customs, Australia’s cargoes, mostly thermal coal for power plants, surged 75% mom to 3.89 million tonnes in April.

This puts Australia’s share of imports at 10%, almost twice as high as in March. Although a larger quantity of Australian coal was registered in November 2021, these were earlier shipments stranded by the ban and took up to a year to clear customs.

At the same time, Russia’s coal exports to China fell from March’s record levels, as did crude oil shipments. Russian gas shipments by sea also fell compared to the previous month. The slowdown in sales comes as Russian leaders visit Shanghai on Tuesday to cement Moscow’s position as a commodity supplier to its eastern neighbor and strategic partner.

China’s total coal purchases fell slightly to 40.68 million tonnes in April, although that was still the third-highest on record and year-to-date shipments are up 89%. The reference price at the port of Qinhuangdao has fallen to its lowest level since early last year as the rising tide of imports comes at a time of seasonally weak demand.

© 2023 Bloomberg LP

Related Articles

Back to top button