China keeps stocking up on discounted coal while the West shuns Russian fossil fuels
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China purchased 7.42 million tons of Russian coal last month, according to data released by the General Administration of Customs on Saturday.
The figure marks the highest monthly level since comparable statistics were launched in 2017. It was up from 6.12 million tons China imported in June and 6.49 million tons in July 2021.
Western buyers opted to avoid shipments from Russia ahead of an EU ban on the country’s coal, which came into effect on August 11. The embargo, aimed at reducing Moscow’s energy revenue, is part of sanctions over Russia’s military offensive in Ukraine.
The Western restrictions have created opportunities for Asian powers, particularly China and India, to boost purchases of Russian coal at discounted prices. Russian thermal coal with a heating value of 5,500 kilocalories reportedly traded at about $150 per ton in late July, while coal of the same quality at Australia’s Newcastle port was priced at over $210 per ton.
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China is Russia’s largest coal buyer, taking in more than 50 million tons of the commodity worth $7.4 billion last year via rail and sea, from Russia’s Far East. Russia accounted for roughly 15% of China’s total coal imports during that period, and was its second-largest supplier behind Indonesia.
China’s shipments of Indonesian coal, mostly cheaper and of lower quality, with a heating value below 3,800 kcal, amounted to 11.7 million tons in July, up 22% from June but down 40% from a year earlier. Meanwhile, the country’s customs data showed zero coal shipments from Australia last month.
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