Chinese steel mills begin ‘diverting’ Australian coking coal as Canberra seeks clarification on reported ban
- Australian coking coal ordered by Chinese steel mills is being diverted following a ban by Beijing, analysts say
- Canberra says it is seeking answers from Chinese government, but stresses China is ‘an important regional partner’
At least four major Chinese steel mills have started diverting orders of Australian coking coal to other countries as a ban on shipments takes effect, analysts said.
The Australian government has refused to speculate the ban is a fresh salvo in a broader diplomatic tussle between the two countries, but some analysts have said it is likely politically motivated.
Officials in Canberra have suggested the move could simply be Beijing looking to manage domestic demand.
Nevertheless, Australian producers have been caught by surprise by the turn of events.
07:34
Australia and China cooperation too valuable for 'nonsensical' decoupling
Some 850,000 tonnes of Australian coking coal en route to China on 10 Panamax cargo ships is now being diverted to other markets, said a global coal analyst, who requested anonymity.