Daily Management Review

China keeps restricting coal imports from Australia


Australia’s share in coal supply in China is noticeably decreasing against the background of tougher inspections of imported coal by the Chinese authorities.

Coal shipments from Australia to China in January 2019 fell by 19% compared with the figures for the same period a year earlier. This was reported by managing director of the Australian mining company New Hope in the comments to Bloomberg with reference to the official statistics of the PRC Customs Service. Over the same period, he said, shipments of Australian coal to Japan and South Korea grew by 10% and 34%, respectively.

During a press conference on Tuesday, March 19, Chinese Foreign Ministry spokesman, responding to a question from reporters, once again stated that more thorough inspections of imports are aimed at protecting interests of Chinese companies and consumers, as well as the country's ecology.

More thorough checks of imported coal were undertaken by China against the background of aggravated relations with the Australian authorities, in particular because of the restrictions that Australia applied to Huawei in participating in the development of 5G mobile networks. Restricting coal imports also puts pressure on Australian currency quotes.

According to Credit Suisse estimates, Indonesia and Russia may get a portion of Australia’s share amid import delays in China’s coal market. 

source: bloomberg.com