“China cuts purchases of Russian coal in 2024China reduced its imports of Russian coal by 7% in 2024, increasing purchases from Australia by 59%. China’s total coal imports
reached a record 547.2 million tons, accounting for 41% of the world total.”, — write: unn.ua
Details
According to customs data, China has reached a record level of coal imports of 547.2 million tons, accounting for 41% of the world’s total, giving the country greater influence on international market pricing. China’s demand is supported by high prices, which, according to the International Energy Agency, are 50% higher than the average level of 2017-2019.
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Purchases from Indonesia, the largest coal supplier to China, increased by 8% to 236.99 million tons, although this is lower than the overall increase in coal imports by 14.4%.
Although Russia remained the second largest supplier of coal to China, its exports decreased by 7% compared to 2023 and amounted to 93.86 million tons.
Galaxy Futures analysts noted that the Russian coal industry is facing high production costs and railroad logistics problems, which are leading to higher transportation tariffs. Due to limited capacity, Russian railways prioritize transportation of more expensive goods, which further complicates the situation for coal exports.
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In 2024, international coal prices declined compared to the previous year, which created difficulties for Russian coal mines, in particular due to reduced profitability.
Sanctions, China’s reintroduction of import tariffs and a decline in domestic demand for coal have further complicated the situation.
Instead, Australian exporters took advantage of the record growth in imports: shipments from Australia increased by 59% to 83.24 million tons, exceeding the figures for 2020. At that time, China imported 77.51 million tons of Australian coal, but in 2021 and 2022, it almost stopped buying it due to an unofficial ban. The ban was lifted in January 2023 after relations between Beijing and Canberra improved, which also had a positive impact on barley and wine trade.
Imports of Mongolian coal to China increased by 19% to 82.82 million tons due to improved infrastructure at the border. However, the volume of purchases of Mongolian coal was slightly lower than that of Australian coal, and Mongolia dropped to fourth place among suppliers.
Recall
The cost of shipping Russian ESPO crude to China has more than tripled since the US imposed aggressive sanctions on Moscow’s oil industry last week, and traders say rates are expected to rise even further.