China eyes more coal imports from Mongolia as supply shortage bites
- At a meeting on Tuesday, China requested more coal from Mongolia to help offset an ongoing supply shortage
- Mongolia has replaced Australia as China’s largest source of imported coking coal since the second half of last year
Beijing has stepped up efforts to source more coal from neighbouring Mongolia amid an ongoing supply shortage, raising more questions about how long a ban on Australian coal can last.
China is suffering from a spike in coal prices amid declining supplies, which has also prompted authorities to ban an influential local trading platform from updating coal prices and market news that could fuel speculation.
Rising coal prices are another worry for China, which is already dealing with high raw material costs that are hurting businesses.
In a virtual meeting with Mongolian deputy prime minister Amarsaikhan Sainbuyan on Tuesday, Chinese commerce minister Wang Wentao broached the topic of buying more mineral and agricultural products from Mongolia, a ministry statement said.
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