January 22, 2025
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Economy

China is replacing Russian coal with Mongolian coal

China’s record coal purchases last year were driven by large increases in supplies from Australia and Mongolia, while Russian supplies actually fell. Bloomberg writes about it. Now that Chinese demand is leveling off, Mongolia may have the best chance to retain or even increase its market share in its southern neighbor at the expense of Russia. While total imports rose 14% to 543 million tonnes in 2024, Australian supplies grew by almost 60%. Exports from Mongolia increased by 19%. Indonesia remained China’s biggest supplier, although growth was relatively modest last year.Advertisement: For all the strategic ties between Beijing and Moscow, Russia is losing out because its coal is too expensive and new US sanctions could make exports even less attractive to Chinese buyers this year . Mongolia, meanwhile, is benefiting from its proximity to China and is looking to consolidate this with better rail links. Unlike Australia, which supplies coal from far away and can react to rising prices elsewhere in Asia, the vast majority of Mongolia’s customers are located in one country. Last year, Mongolia accounted for 60% of its southern neighbor’s steelmaking coking coal imports. Previous national security objections to aligning the country’s track specifications with China’s have been overcome, and the government is now pushing for improved rail links across the border, which could eventually double China’s coal supplies.Advertisement: Recall: Russian coal exporters are facing cutbacks for the third year running, resulting in reduced profits and output.”, — write: epravda.com.ua

China’s record coal purchases last year were driven by large increases in supplies from Australia and Mongolia, while Russian supplies actually fell. Bloomberg writes about it. Now that Chinese demand is leveling off, Mongolia may have the best chance to retain or even increase its market share in its southern neighbor at the expense of Russia. While total imports rose 14% to 543 million tonnes in 2024, Australian supplies grew by almost 60%. Exports from Mongolia increased by 19%. Indonesia remained China’s biggest supplier, although growth was relatively modest last year.Advertisement: For all the strategic ties between Beijing and Moscow, Russia is losing out because its coal is too expensive and new US sanctions could make exports even less attractive to Chinese buyers this year . Mongolia, meanwhile, is benefiting from its proximity to China and is looking to consolidate this with better rail links. Unlike Australia, which supplies coal from far away and can react to rising prices elsewhere in Asia, the vast majority of Mongolia’s customers are located in one country. Last year, Mongolia accounted for 60% of its southern neighbor’s steelmaking coking coal imports. Previous national security objections to aligning the country’s track specifications with China’s have been overcome, and the government is now pushing for improved rail links on the border, which could eventually double coal supplies to China. with reductions resulting in reduced profits and production.

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