China Energy reportedly places order for Australian coal
25 Jan 2023
China unofficially banned the commodity after diplomatic
relations with Australia broke down in 2020 over Covid-19
·
Capesize
bulker spot rates slide 4.5% in a day as iron ore and steel prices drop
in Stamford
China Energy Investment
Corp has placed an order to import Australian coal, marking one of the first
deals since Beijing eased an unofficial ban on the commodity in 2020, according
to Reuters.
The move comes almost
three weeks after China’s state planner allowed three central government-backed
utilities and its top steel maker to resume Australian coal imports.
Seaborne coal
demand may stay ‘subdued’ as China eases Australian ban, observers say
On 6 January, the National
Development and Reform Commission (NDRC) called upon China Datang Corp, China
Huaneng Group, China Energy Investment Corp and China Baowu Steel Group to
discuss resuming imports as China’s easing of Covid-19 restrictions boosts coal
demand.
Sources close to the
matter have said that China Energy’s cargo is likely to be loaded before the
end of this month, Reuters reported on Tuesday.
China Energy did not
immediately respond to a request seeking comment. The company has so far only
ordered thermal coal — typically used in power plants, two of the sources said.
Australia was China’s
second-largest coal supplier and exported almost a quarter of its coal to China
in 2019 before the unofficial ban, which was imposed due to diplomatic ties
breaking down in 2020.
The ban caused coal
Australian coal exports to China to fall to almost nothing in 2021 and 2022,
Reuters reported.
Coal cargoes shipped from
Australia to China, which had accounted for nearly a quarter of all Australian
coa`