Chinese imports of Russian coal in July hit 5-year high as West shuns Moscow

China’s coal imports from Russia jumped 14% in July from a year earlier to their highest level in at least five years, according to customs data. Here, a bulldozer moves piles of coal from a storage silo at the Osinnikovskaya Coal Mine, operated by Raspadskaya PJSC, in Osinniki, Russia.

Andrei Rudakov | Bloomberg | Getty Images

China’s coal imports from Russia jumped 14% in July from a year earlier to their highest level in at least five years, as China bought coal at a discount while Western countries shunned Russian cargoes on its invasion of ukraine.

China imported 7.42 million tonnes of coal from Russia last month, data from the General Administration of Customs showed on Saturday. This is the highest monthly figure since comparable statistics began in 2017, compared to 6.12 million tonnes in June and 6.49 million tonnes in July 2021.

Western countries avoided shipments from Russia ahead of a European Union ban on Russian coal that came into effect on August 11, aimed at reducing the Kremlin’s energy revenues on his February invasion.

The ban forced Russia will target buyers like China and India and sell at a very favorable price.

Russian thermal coal with a calorific value of 5,500 kilocalories (kcal) was trading at the end of July around $150 a tonne on a cost and freight basis, while coal of the same quality at the Australian port of Newcastle was valued over $210 per ton on a free on board (FOB) basis.

Learn more about China from CNBC Pro

Some Chinese traders expect more Russian coal to flow into China in the fourth quarter, when utilities in northern China build up inventories for the winter heating season.

July shipments of Indonesian coal, mostly cheap and low-quality thermal coal with a calorific value of less than 3,800 kcal, amounted to 11.7 million tons. That was up 22% from June, but down 40% from a year earlier.

China has reduced its overall coal imports in recent months amid rising domestic production.

Power plants in southern China increased tenders to buy Indonesian coal in August because it is cheaper than domestic coal, while demand for coal-fired power generation was boosted by a wave of record heat.

Indonesian thermal coal with a calorific value of 3,800 kcal changed hands at around $78 per ton on an FOB basis last week, which would still be lower at around 690 yuan ($101) for local coal considering shipping costs.

Chinese customs data showed there were no coal shipments from Australia in July.

Source link

Denial of responsibility! is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – The content will be deleted within 24 hours.

Similar Articles

Most Popular