China’s July Russian coal imports hit 5-yr high as West shuns Moscow

Imported coal is seen lifted by cranes from a coal cargo ship onto a truck at a port in Lianyungang, Jiangsu province, China July 26, 2018. Image taken July 26, 2018. REUTERS/Stringer

SINGAPORE, Aug 20 (Reuters) – China’s coal imports from Russia jumped 14% in July from a 12 months earlier to their highest in at the least 5 years, as China purchased discounted coal whereas Western nations shunned Russian cargoes over its invasion of Ukraine.

China introduced in 7.42 million tonnes of coal from Russia final month, information from the Common Administration of Customs confirmed on Saturday. That was the very best month-to-month determine since comparable statistics started in 2017, up from 6.12 million tonnes in June and 6.49 million tonnes in July 2021.

Western nations have been avoiding cargoes from Russia forward of a European Union ban on Russian coal that got here into drive on Aug. 11, aimed toward decreasing the Kremlin’s power income over its February invasion. learn extra

The ban has compelled Russia to focus on consumers resembling China and India and promote at a steep low cost.

Russian thermal coal with a heating worth of 5,500 kilocalories (kcal) traded round $150 a tonne on a cost-and-freight foundation in late July, whereas coal of the identical high quality at Australia’s Newcastle port was assessed at greater than $210 a tonne on a free-on-board (FOB) foundation.

Some Chinese language merchants anticipate extra Russian coal to stream into China within the fourth quarter when utilities in northern China construct shares for the winter heating season.

July shipments of Indonesian coal, principally low-cost, low-quality thermal coal with a heating worth beneath 3,800 kcal, have been 11.7 million tonnes. That was up 22% from June however down 40% from a 12 months earlier. China has decreased its general coal imports in current months amid surging home output.

Energy crops in southern China have elevated tenders to purchase Indonesian coal in August as it’s cheaper than home coal, whereas demand for coal-fired energy technology has been boosted by a document warmth wave. learn extra

Indonesian thermal coal with a heating worth at 3,800 kcal modified hand at about $78 a tonne on a FOB foundation final week, which might nonetheless beneath about 690 yuan ($101) for native coal when contemplating delivery prices.

China’s customs information confirmed zero coal cargo from Australia in July.

($1 = 6.8091 Chinese language yuan renminbi)

Reporting by Muyu Xu; enhancing by Richard Pullin and William Mallard

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