China buys Australian coal again

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One of China's largest coal importers has secured a deal to supply Australian cargo, and others are already in talks to buy as restrictions on imports from the producer are eased.

China's National Development and Reform Commission has negotiated proposals to allow CEIC, Baowu and two other importers to resume purchases from Australia this year, beginning the process of easing an unofficial ban imposed in late 2020 as relations between Beijing and Canberra soured.



According to one Bloomberg source, representatives of the Chinese coal sector are likely to discuss further easing of restrictions on traders from Australia. It is expected that in the future even more local companies will receive permission to purchase fuel from this state.

China Energy Investment Corp. has purchased at least two shipments from Australia and may purchase up to four more shipments, according to people familiar with the matter. Coal will arrive in China in February.

As industry experts note, China was forced to “thaw” relations with Australia, as it was unable to obtain sufficient volumes of fossil fuel from Russia, which did not solve the children's problems of its mining sector. Having every opportunity to satisfy the growing demand of a neighboring friendly state for this type of fuel, traders of the Russian Federation, unfortunately, missed an important client to its geopolitical opponent.
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  1. Expert_Analyst_Forecaster
    Expert_Analyst_Forecaster
    0
    7 January 2023 10: 12
    could not get sufficient volumes of rock fuel from Russia, which could not solve the children's problems of its mining sector. Having every opportunity to meet the growing demand of a neighboring friendly state for this type of fuel

    Logic is hard. "Having all the possibilities" - like they didn't want to, as if someone there decided not to supply.
    There is not enough railway capacity for transporting coal, as well as port facilities. That is, they wanted to want something, but physically they could not.
    You can’t increase power quickly, and it’s not clear whether this should be done. There are no long term contracts. China buys coal at big discounts. In general, the coal industry has earned good money. And you can't earn all the money.

    That is, I have a positive view of the situation with the sale of coal to China. Unlike ...
    1. Human_79
      Human_79
      0
      7 January 2023 22: 20
      Right words
  2. In passing
    In passing
    +3
    7 January 2023 11: 09
    China can continue to be attacked because of the Uyghurs, and they will. And because of Taiwan, too. I see no particular reason to drive for free, because of the same policy, energy resources go there. You can’t buy it, you didn’t buy Ukraine, you didn’t buy Central Asia, China even more so. Nothing personal, just business.
  3. usm5
    usm5
    0
    7 January 2023 12: 01
    The point, I think, is not only in logistics. China has huge reserves of dollars that must be urgently sold into tangible assets. Therefore, for Australia, the exchange of coal for dollars is a bargain. And Russia, unlike Australia, in exchange for coal supplies, does not need dollars, but supplies of Chinese products.
    1. People
      People
      -1
      8 January 2023 10: 04
      For Yours! Natural Resources, buy disposable junk from China that makes .. tyap blunder .. at least from garbage covered with a thin layer of nickel. Do you have something to think?! ..