There are reports that China has stopped Australian coal imports. The Australian government says it is investigating the reports.
Reuters reports that last week, industry sources said that some Chinese ports had been instructed not to accept Australian imports of thermal and metallurgical coal, which were being resold to other markets at the last minute before loading and unloading.
IHS Markit (IHS Markit), a global information services company, reported on Oct. 8 that the ports of Wahoo and Jingtang in northern China and Fangcheng in southern China notified sellers last month that they would refuse to unload and declare Australian imports of thermal and metallurgical coals starting Oct. 1.
The Reuters report mentioned that China is the largest importer of Australian coal, with 27 percent of metallurgical coal and 20 percent of thermal coal exported to China from January to June this year, and coal was Australia’s second largest export product last year, with $39.52 billion, second only to iron ore.
Australian Prime Minister Scott Morrison said the government was investigating the reports. He also said that China often adjusts its import quotas to protect its market.
In the case of coal, China does have its own coal industry and the Chinese government sometimes issues domestic quotas to support employment in areas of local production in China,” Morrison told the media, “and it’s not unusual for them to issue domestic quotas on coal production.
Morrison also said the Australian government’s Department of Trade is investigating the issue.
Analysts say China’s coal imports increased sharply in the first half of this year, but are expected to decrease in the second half due to weakening demand, so that this year’s coal imports will be a quarter less than last year, about 80 million tons.
However, some analysts pointed out that China’s decision to suspend Australia’s coal imports shows China’s dissatisfaction with Australia’s political stance. Australia first banned Huawei from participating in the construction of a local 5G broadband network, and then called for an independent investigation into the source of the New Crown virus.
In May, China slapped hefty tariffs on Australian barley imports and in August said it would launch an anti-dumping investigation into Australian wine imports. The Chinese government has also discouraged students and tourists from traveling to Australia.
Reuters columnist Clyde Russell wrote on Tuesday that if China’s ban on Australian coal imports is true, it would immediately stifle an important trade channel between the two countries and seriously escalate political tensions between them.
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