China's ban on Australian coal has affected the price of this energy source
2020-12-17 04:45

China's ban on Australian coal has affected the price of this energy source

After China imposed a ban on Australian coal, the cost of port coal in the South has risen sharply.

Earlier, China's National Development and Reform Commission negotiated with 10 major energy corporations and allowed them to import coal without customs restrictions. The exception was Australia.

Such decisions allow Russia, Indonesia and Mongolia to export more to China. As stated by Chinese power producers, the price does not exceed 640 yuan per tonne ($98) of local coal.

For our country, the PRC's actions are assessed ambiguously, because, on the one hand, coal producers get an opportunity to increase their supplies to China and, theoretically, they will be able to pay more expensive by rail.

On the other hand, however, it is impossible to carry more because of the capacity of the Eastern Range, which cannot effectively compete with Indonesian coal.

Recently, Chinese representatives tried to sign agreements with Russia to import Russian coal for $60-70 per ton.

Against the background of China's ban on Australian coal, the South African steam coal index (API4) has started to rise. Now, for example, the index for January is $100 per tonne, a week ago the figure was $82 per tonne.

Made in Russia // Made in Russia

Author: Ksenia Gustova