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AsiaElec RENEWABLES AsiaElec

Fortescue to build

renewable energy hub

in Western Australia

AUSTRALIA CHINA’S imports of coking coal fell by 25% “If anything, similar to the current market
in 2021 because of an unofficial ban on Aus- situation, the trade dispute impact will be more
tralian coal imports and lower shipments from greatly felt by Australian metallurgical coal pro-
Mongolia. ducers and Chinese steel mills, rather than ther-
China imported 54.7mn tonnes of coking mal coal producers and Chinese power utilities,”
coal in 2021, according to official figures, 24.6% the note said.
less than in 2020. With rising demand from other Asian mar-
“Even though demand for non-Australian kets and the European Union for Australian cok-
seaborne coal imports was strong, it still could ing coal, the supply chains disrupted by China’s
not make up for the gap left by Australian and informal import restrictions have largely been
Mongolian coal [imports],” said Jia Na, a coal reorganised, according to “The Resources and
analyst with the Shanxi-based Today Think- Energy Quarterly” report produced by the Aus-
Tank, the South China Morning Post reported. tralian government in December.
Imports from Australia resumed in October Chinese power demand grew by an estimated
2021, reaching 6.17mn tonnes, or 11.3% of total 10% in 2021, according to the International
imports. Energy Agency (IEA). Around half of 2021’s
China started importing Australian coal in global growth in electricity demand took place
October as Beijing ended its import ban, which in China.
started in October 2020. In 2021, China imported 14.04mn tonnes of
Meanwhile, 5.54mn tonnes of Australian coking coal from Mongolia, down by 40.93%
thermal coal, which is used for power genera- compared with a year earlier.
tion, was also imported in the final three months Steel mills have as a result turned to other
of 2021 when the country was faced with a power sources for coking coal, with imports from Rus-
crunch due to a severe coal supply shortage. sia up by nearly 60% to 10.67mn tonnes in 2021.
Most of the Australian coal received in the Shipments from the US also surged almost
final three months of 2021 was stranded at Chi- tenfold to 10.18mn tonnes, while imports from
nese ports. The bulk of this coal has now been Canada also almost doubled to 9.27mn tonnes,
cleared, Jia added. according to Chinese customs data.
There is, though, no sign of a wholesale lift- It is expected that China’s appetite for
ing of the unofficial coal ban that will allow new imported coking coal may partially recover
shipments from Australia, analysts said. this year, but is still not expected to reach the
China imposed unofficial bans on the pre-pandemic level, according December’s
imports of a variety of Australian products – “The Resources and Energy Quarterly”, which
including coal, lobsters and log timers – in late forecasts for the value, volume and price of Aus-
2020, after Canberra supported calls for an inter- tralia’s major resources and energy commodity
national investigation into China’s handling of exports.
the coronavirus (COVID-19) outbreak. “Steel output in China may also slow in line
China and Australia will continue to seek with industrial production and [gross domestic
alternative trade partners in 2022, S&P Global product] growth, which are both softening,” the
Platts said in January. report said.™

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