China coal: Australia ban continues to weigh on supply, imports down 40 per cent even as Russia moves to fill gap

Name: Will iron ore be dragged into the ongoing China-Australia trade conflict?
Uploaded: 2021-03-23T20:30:18.000Z
Duration: 9 min 18 s
Description: Will iron ore be dragged into the ongoing China-Australia trade conflict?

Coal imports into China for the first two months of 2021 fell nearly 40 per cent compared to a year ago, with the ban on Australian imports now in its sixth month

New restrictions at Mongolian border have also slowed down coking coal deliveries, but Russia is looking to take advantage to ramp up exports of coal to China

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Coal imports into China for the first two months of 2021 fell nearly 40 per cent compared to a year ago, according to China customs data. Photo: Xinhua

Su-Lin Tan

Published: 4:30am, 24 Mar 2021Updated: 5:40am, 24 Mar 2021

China’s imported coal supplies are under pressure amid a prolonged ban on Australian imports that shows “no sign of being lifted in the near term”, and new restrictions at the border with Mongolia.

Coal imports into China for the first two months of 2021 fell nearly 40 per cent compared to a year ago, according to China customs data, despite Russian exports looking to fill the gap caused by the Australian ban, S&P Global Market Intelligence said.

Mongolia enacted stricter checks at the key border crossing at Ganqimaodu a week ago after a worker at its nearby copper mine tested positive for coronavirus, slowing down coking coal deliveries into China, Mysteel Global analyst Sean Xie said.

I do not think anyone in China dares to book new Australian cargoes

China-based coal trader

Despite efforts to lift coal shipments into China, in part driven by the absence of competition from Australian coal, Mongolia’s coal exports to China have fallen around 22 per cent since the start of the pandemic as a result of border restrictions, Xie said.

The ban on Australian coal – now in its sixth month – remains in force, with analysts not expecting any Australian shipments to be allowed into Chinese ports this month.

Shortly after the unofficial ban on Australian coal, China also blocked imports of Australian lobsters, wine, log timber, sugar and barley late last year, as bilateral tensions between the two countries soured.

According to commodity and energy price agency Argus Media, Chinese buyers have continued to hold off booking coal cargoes from Australia.

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Will iron ore be dragged into the ongoing China-Australia trade conflict?