27 Oct. 2021 11:11
Experts say the shortage of coal in China will not prompt Beijing to lift a ban on imports from Australia at any time. In view of the nationwide energy crisis in China, there is an urgent need to improve energy supply.
Earlier this month, Beijing reportedly released small quantities of coal from Australia, which had been stuck in Chinese ports for almost a year due to an unofficial import ban on fuel. Said Vivek Dhar, mining and energy resource analyst at the Commonwealth Bank of Australia. CNBC Quoted:
“Reports that small quantities of Australian coal have been allowed through customs in China have raised speculation that Chinese authorities will try to ease the ban on Australian coal imports.”
However, experts do not believe that the Chinese authorities will ease the import ban on Australian coal this winter.
Last year, China stopped buying coal from Australian producers amid trade disputes sponsored by Canberra in support of an international inquiry into China’s involvement in the Govt-19 eruption. Previously, Australia was a major supplier to China, accounting for almost 38 percent of Chinese coal imports. Beijing’s trade restrictions have been extended to other Australian exports such as wine and barley.
Rory Simington, chief analyst at Wood McKenzie, told the media that there were no indications that China would allow companies to buy new supplies of Australian coal. He explained:
“It’s mostly a political issue, not the economy. Yes, there are no signs of easing the embargo on new goods.”
At the same time, the researcher stressed that there was no improvement in the overall situation.
China relies heavily on coal for power generation. Government officials have urged state energy companies to protect supplies for the coming winter at all costs to alleviate the power shortage.
At least 20 Chinese provinces have been without power at various levels since August. The growing deficit in coal supply is the main impetus for the power crisis, as industrial demand increased as the government economy slowly recovered after tough government policies to reduce emissions and the epidemic.
According to analysts, China could easily find more coal in other countries, such as Indonesia, Mongolia, Russia, the United States or Colombia.
Abhinav Gupta, a dry cargo analyst at shipping brokerage firm Bremer ACM, said China was likely to push Indonesian suppliers to boost coal exports. However, their skills are almost exhausted.
Between January and August, Indonesia reportedly accounted for about 57 percent of China’s steam coal imports, while supply from Russia increased.
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