According to people familiar with the matter, China has banned imports of Australian coal on the back of the two countries’ souring bilateral relationship.
Some sources said that Chinese power stations and steel mills have been verbally ordered to stop utilizing Australian coal immediately. Ports have also been told not to offload Australian coal.
China’s customs administration wasn’t immediately available to comment. There is also no clarity on when the ban might end or how it might affect long-term ongoing contracts.
China is mainly self-sufficient when it is about coal, as it mines and burns about half the world’s supply, and its utilities use lower-quality thermal coal for just a small fraction of their needs.
However, the country is still in need to import higher-quality coking coal, and Australia is the dominant player in this market with over half of imports. China is also the main buyer of Australia’s profitable export commodity, iron ore.
China has been stepping closer to cleaner-burning energy to cut pollution and meet its climate goals which have driven coal out of favor gradually although still covers more than half of the country’s energy requirements.
Australian Trade Minister Simon Birmingham stated that the government is aware of the ban reports and have had discussions with the country’s resources industry.
On the other hand, comments were unable to be achieved from the BHP Group, Australia’s biggest exporter of coking coal, and China Baowu Steel Group, the nation’s biggest mill.
