Coal news and updates

Since Beijing instituted an unofficial boycott of Australian coal last October in a major escalation of the two countries’ trade conflict, global flows of coal have undergone a major reshuffling. While Chinese imports of Australian coal have effectively dropped off to zero, imports from other countries have shot up to fill the gap. After all, coal makes up nearly 60% of China’s energy consumption, so its steady supply is critical for the country’s energy security.

 

Australia is the world’s largest exporter of metallurgical (or coking) coal, used to make steel. Indonesia is the world’s largest exporter of thermal coal, used mainly in power plants, with Australia following in second. Meanwhile, China is by far the world’s largest importer of coal, followed by India and Japan.

 

Two of the biggest winners from the disruptive boycott are India and Indonesia.

 

As Australian exports of metallurgical coal to China plummeted, India stepped in to snap up Australia’s supplies, according to data from commodities tracking firm Kpler. Those purchases have been made cheaper in light of the Chinese boycott, according to analysts.

 

 

Source : https://qz.com/2051594/chinas-boycott-of-australian-coal-has-been-good-for-india/