Australia becomes China’s top source of coking coal as stimulus stokes construction boom
- Australian exports of coking coal to China for steel making surged 67 per cent in the first half, as coronavirus restrictions held back imports from Mongolia
- Australian shipments of thermal coal used in power plants also rose strongly, as rumours of a Chinese ban over diplomatic tensions proved incorrect
Australia became the largest exporter of coking coal to China in the first half of the year due to a strong rebound in steel production used to supply the country’s post-Coronavirus infrastructure and property building boom.
Pandemic restrictions during the spring held back shipments from Mongolia, previously China’s top source of the commodity.
In addition, China imported more thermal coal – used in power plants to generate electricity – despite rumours that Chinese companies had been told not to buy Australian coal because of strained diplomatic ties between Beijing and Canberra.
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China’s imports of Australian coking coal – processed coal used in blast furnaces for making steel – rose 67 per cent to 24 million tonnes compared to the same period last year, new data from China’s General Administration of Customs shows.