Coal news and updates

China's ports boost efforts to expand coal import, clear consignments

Amid the potentially rising demand for coal ahead of the Chinese New Year holidays, China's coal supplies strengthened, with ports ramping up efforts to expand imports or clear coal from countries like Australia. Meanwhile, domestic suppliers increased production capacity to ensure adequate inventories. Australian coal docked at ports have mostly been cleared.

Imported Australian coal to China in 2021 was 66.37 million tonnes less than in 2020, a drop of more than 85 per cent year on year (YoY), amid the disruption by the soured relations between China and Australia, according to a report in a state-controlled Chinese newspaper.

Last year, Australian coal imports took only around 3 per cent of the 320 million-tonne total imports.

Indonesian coal, which accounts for about 60 per cent of China's coal imports, has improved significantly in recent weeks after the temporary trade halt in early January, while Russia's coal supply remains stable.

Further efforts will be made to ensure coal supplies in the next stage, especially during the Spring Festival, with up to 500,000 tonnes of coal resources to be prepared on a daily basis before the event, the National Development and Reform Commission (NDRC) recently said.

While coordinating railway transportation companies to strengthen capacity support, the amount of coal transferred to Qinhuangdao Port, the major coal trading port in northern China, and other ports will also be strengthened, NDRC said.

While there has been a rise in coal imports, major supplies will be from China's own mines, which take up to 90 per cent of the total coal consumption and are relatively cheaper with lower transportation costs.