Coronavirus: China demand for Australian resources stays on track
Mining industry rejects speculation Beijing will snub Australian resources, with demand for iron ore and coal remaining high.
The mining industry has rejected speculation that China will snub Australian resources, with the Communist nation importing 127 million tonnes of coal in the first four months of the year.
As China unlocks its economy, the demand for Australian iron ore and coal will remain high with Beijing expected to naturally shift back to using its domestic coal stocks.
Trade Minister Simon Birmingham said “as has been the case in the past”, China would continue placing informal short-term quotas on coal imports to protect its domestic coal industry and local jobs.
“Industry has successfully managed these issues previously but we are monitoring the situation closely and expect any arrangements China puts in place to be WTO consistent and CHAFTA compliant,” Senator Birmingham said.
With no formal directives being made by Beijing on coal, local industry sources said speculation that power stations were being ordered not to accept Australian coal shipments was misleading given China’s natural shift back to using its own coal stocks.
The People’s Congress, being held in Beijing on Friday, is expected to signal China’s domestic policy platform and plans to stimulate its economy, potentially including how it balances domestic coal production and imports.
Minerals Council of Australia chief executive Tania Constable said coal exports to China were up 26.9 per cent year-on-year.
“Australia’s high quality coal remains in demand in China and is helping fuel its cities and factories as the country recovers from the COVID-19 pandemic,” Ms Constable said.
“Australia’s minerals companies will continue to work with Australian and Chinese authorities to meet all requirements.”
