Increased domestic production, high inventories and rising imports from Russia and Mongolia mean China is unlikely to resume buying Australian coal even if political relations thaw.
and imports of the commodity from Russia and Mongolia, traders and analysts say.
“Second, even if the Australian coal is released, compared with domestic coal, the current price of imported Australian coal is not ideal.China is also ramping up coal imports from Russia despite sanctions against Moscow by Western powers over its invasion of Ukraine. Imports from Mongolia have also climbed since pandemic-related border restrictions were eased.
China is also ramping up domestic coal production, which it hopes will give it more control over price fluctuations and stave off a repeat ofAnalysts said China would produce an additional 200 million tonnes of thermal coal this year, particularly in the provinces of Shanxi, Shaanxi and Inner Mongolia. Last week, Shanxi said it wanted to increase annual production by 107 million tonnes this year, to 1.3 billion tonnes, by restarting 124 inactive mines.
China’s Metallurgical Industry Information Standards Research Institute said rising coke prices were hurting profit margins for steel mills.
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