China’s ban on Australian coal could be ‘indefinite’ amid heightened political tensions
- China has reportedly banned imports of Australian thermal and coking coal, leaving some Australian vessels stuck at Chinese ports
- Analysts say the move is likely politically motivated, but aligns with China’s efforts to reduce pollution and consolidate the coal sector
China’s ban on Australian thermal and coking coal imports, which has left several Australian vessels stranded at Chinese ports, is likely to remain in place indefinitely amid deteriorating trade ties between the two nations, analysts said.
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. “Indications from sources are that the number of vessels waiting at Chinese ports has increased quite a bit of late.
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“Some reports have suggested that as much as 7 million tonnes of coal are on board vessels waiting along Chinese coast, up from the usual 4 to 5 million tonnes normally seen during this period of time along the coast.”