China found replacement for Australian coal just across the border I think this is a better choice and at the same time help neighbor overcoming their economic hardship
China’s ban on Australian coal causes surge in imports from Mongolia, but difficulties remain
- Beijing’s ban on Australian coal has resulted in increasing imports from Mongolia, meaning the country could retake its position as China’s top supplier
- But Chinese users could bear brunt of the Australian ban due to higher costs for alternati
- ves, transport difficulties and a drop in quality
Published: 6:30am, 28 Oct, 2020
Trucks carrying coal from Mongolia on route to the border with China in Khanbogd Soum in the Gobi desert. Photo: Reuters
Chinese steel mills and power stations have started buying more coal from Mongolia after Beijing imposed a
, but price, quality and logistical difficulties mean it will not be easy for some users to make the switch.
While politics might have played a role in the decision to shut off Australian coking and thermal coal, the practical difficulties in doing without it may force a rethink of the ban over time, analysts said.
Coal from Mongolia, which borders China to the north, is the most obvious replacement for Australian coal, particularly due to the inability of suppliers located further away – such as the United States, Russia and Canada – to meet a short-term increase in demand, S&P Global Platts said in a recent update.