China-Australia relations: imports of some stranded Australian coal could soon be allowed
- Around 70 ships are waiting to discharge their cargoes after a ban on Australian coal went into effect last year
- China’s coal imports from all countries surged to record levels in December, lifting the annual total for coal above 300 million tonnes to its highest since 2013
China is considering accepting some stranded Australian coal cargoes, an effort that would help ease a logjam of vessels that have stacked up off its coast for months.
The shipments that could be cleared are those that arrived before a ban on Australian coal went into effect, said a person familiar with the situation, who asked not to be identified as the discussions are private.
The deliberations are at an initial stage and any decision would need the approval of more senior Chinese leaders, the person said.
China’s customs administration did not immediately respond to a fax seeking comment. Around 70 ships are waiting to discharge according to shipping data compiled by Bloomberg.
The opaque nature of the Australian ban, which has never been publicly acknowledged by Beijing, makes pinpointing its start date difficult.
The government was rumoured to have ordered its five biggest utilities to halt Australian purchases as early as May, while in October, power stations and steel mills were told to stop using Australian coal.
Most of the stranded coal is the type used to make steel, while a smaller portion is used for power generation, according to data intelligence firm Kpler.
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At the same time, China’s steel mills are churning out record quantities to feed a state-funded infrastructure boom to rescue the economy after the ravages of the coronavirus pandemic.
China’s authorities are also surveying the stranded carriers to identify shipowners, crew nationalities, and end users of the coal, the person said.