“China cuts Russian coal purchases in 2024 China has cut Russian coal imports by 7% in 2024, increasing purchases from Australia by 59%. Total coal imports to China reached a record 547.2 million tons, which is 41% of the world volume.”, — write on: unn.ua
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According to customs data, China has reached a record level of coal imports – 547.2 million tons, which is 41% of the world volume, giving the country greater influence on pricing in international markets. Chinese demand is supporting high prices, which are 50% above the 2017-2019 average, according to the International Energy Agency.
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Purchases from Indonesia, the largest supplier of coal to China, rose 8% to 236.99 million tonnes, although this was below overall coal import growth of 14.4%.
Despite the fact that 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.
Analysts at Galaxy Futures noted that Russia’s coal industry is facing high production costs and rail logistics issues, which are driving up freight rates. Due to limited capacity, Russian railways give priority to the transportation of more expensive goods, which further complicates the situation for coal exports.
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In 2024, international coal prices fell compared to the previous year, which created difficulties for Russian coal mines, in particular due to reduced profitability.
Sanctions, the resumption of import tariffs by China and a decline in domestic demand for coal have further complicated the situation.
Instead, Australian exporters benefited from record import growth, with shipments from Australia up 59% to 83.24 million tonnes, surpassing 2020 figures. At the time, China imported 77.51 million tonnes of Australian coal, but in 2021 and 2022 it almost stopped buying because of an unofficial ban. The ban was lifted in January 2023 following improved relations between Beijing and Canberra, which also had a positive effect on trade in barley and wine.
Mongolian coal imports to China increased by 19% to 82.82 million tons thanks to improved border infrastructure. However, Mongolian coal purchases fell slightly behind Australian coal, and Mongolia dropped to fourth place among suppliers.
We will remind
The cost of shipping Russian ESPO crude to China has more than tripled since the U.S. imposed aggressive sanctions on Moscow’s oil industry last week, and rates are expected to rise further, traders said.