Australian coal exports to China fall 21 per cent in October
New data detailing the big crash in Australian coal exports to China last month another sign the commodity is the latest victim of Beijing’s anger.
Australia’s coking coal exports to China crashed in October with Beijing rushing to secure supplies from rival producers in the latest sign of heightened trade tensions between the two countries.
China’s overall coal imports for October fell by 47 per cent compared with a year earlier and declined 27 per cent on the September level, reflecting the country’s strict import quotas.
However, a breakdown of the numbers released on Friday shows imports of Australian coal fell 21 per cent on the same period last year, compared to big jumps for rival producers.
“The breakdown of China’s coking coal imports showed that imports from Australia tracked well below peers last month,” CBA analyst Vivek Dhar said.
“China’s coking coal imports from Mongolia, Canada and Russia lifted 14 per cent per year, 136 per cent per year and 20 per cent per year respectively. The import breakdown is a strong signal that China, as many have speculated, is limiting its coal imports from Australia.”
The Australian revealed on Friday the coal flotilla stuck off the Chinese coast has swollen to more than 80 ships carrying blacklisted cargo worth more than $1.1bn, provoking the Morrison government to raise concerns about “discriminatory action”.
China’s explanation the ban on Australian coal was that the coal in question had failed to meet environmental standards, CBA said.
“Comments made by a foreign ministry spokesman from China on Wednesday that ‘many’ Australian coal shipments have ‘failed to meet environmental standards’ is also the first indication that China has indeed placed restrictions on coal imports from Australia,” Mr Dhar said.
“It’s difficult to believe that environmental standards are at the heart of the restrictions on Australian coal. In any case, coking coal prices and volumes from Australia are likely to remain under pressure for the remainder of this year. The key hope for Australia’s coking coal sector is increased demand from India, South Korea and Japan.“
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