Refusing coal from Australia, China eventually buy Australian coal indirectly from other countries at high price
As China-Australia relation getting strained, China imposed trade restriction towards Australia, preventing Australian coal vessels with coal from unloading in China. Local news outlet News.com.au quoted coal mining company Whitehaven Coal's quarterly report, which said that while China purchase coal from other countries, what it gets is still Australian coal.
The company noted in its quarterly report that China has banned Australia coal but “has supplemented its domestic production with higher cost coal from alternative countries such as Russia, Indonesia and South Africa,” which in effect subsidizes China's domestic coal production. The report also said as China experienced a cold winter this year, domestic coal demand is rising, and China had to raise total coal import quota late in 2020.
The report further to point out that, Australian coal has found new markets. “Instead of being delivered to China, Australian coal is now finding customers in alternative destinations, including India, Pakistan and the Middle East, and traded coal historically delivered into these markets is finding its way into China.”
#Australia #China #Coal #TradeDisputes
Source: Stand News #Jan15
https://bit.ly/3bkzltx
As China-Australia relation getting strained, China imposed trade restriction towards Australia, preventing Australian coal vessels with coal from unloading in China. Local news outlet News.com.au quoted coal mining company Whitehaven Coal's quarterly report, which said that while China purchase coal from other countries, what it gets is still Australian coal.
The company noted in its quarterly report that China has banned Australia coal but “has supplemented its domestic production with higher cost coal from alternative countries such as Russia, Indonesia and South Africa,” which in effect subsidizes China's domestic coal production. The report also said as China experienced a cold winter this year, domestic coal demand is rising, and China had to raise total coal import quota late in 2020.
The report further to point out that, Australian coal has found new markets. “Instead of being delivered to China, Australian coal is now finding customers in alternative destinations, including India, Pakistan and the Middle East, and traded coal historically delivered into these markets is finding its way into China.”
#Australia #China #Coal #TradeDisputes
Source: Stand News #Jan15
https://bit.ly/3bkzltx