Page 8 - AsiaElec Week 21 2022

AsiaElec COAL AsiaElec

China doubles coal

imports from Russia, runs

risk of sanctions

CHINA CHINESE imports of coal from Russia have exports to China may evolve into Moscow
almost doubled in the March-April period, Chi- over-extending itself at home, though.
nese government data showed. The director of Moscow’s Analytical Credit
Based on trade data released by Refinitiv, Ratings Agency (ACRA), Ilya Makarov, last
China imported a total of 4.42mn tonnes of Rus- week expressed concern over too much of a shift
sian coal over the last two months, confirming to the Asian markets leading to problems with
Beijing’s northern neighbour as the nation’s sec- domestic rail freight infrastructure, and a possi-
ond-biggest supplier of coal with 19% of imports. ble decrease in coal prices across Asia.
The coal imported is primarily thought to be Some in China and across Asia also see Bei-
made up of thermal coal, although coking coal jing snapping up cheaper Russian coal as going
used in China’s all-important steel industry is against internationally promised goals of the
believed to comprise at least 1.7mn tonnes of the nation going carbon neutral by 2060.
total, according to the General Administration Despite assurances to this end being made
of Customs (GAC). less than a year ago, the government of Xi Jinping
In the months since Moscow ordered hostili- has this year pushed forward on plans to build
ties to start against Ukraine on February 24, with more coal fired power plants at home, in addi-
much of the Western world imposing sanctions tion to offering finance for many more overseas.
on Russia, moves have been made to lower Rus- The mining of coal too will increase in China.
sian energy prices to friendly nations. In news released earlier in the year, authorities
This has seen very cheap sales of coal and oil in Beijing announced that an additional 300mn
to nations maintaining relations with the Krem- tonnes of coal would be mined, mainly in the
lin, including China, expand to the extent that north and west of the country.
Russian coal now makes up 19% of all Chinese This figure will push up total coal mined by
coal imports. 7% compared to 2021, with the overall total pro-
Just after the invasion of Ukraine, that figure duced in China this year expected to be in the
stood at 14%. region of 4.1bn tonnes by December.
There are concerns in China, however, over Yet whilst benefiting Chinese energy secu-
potential sanctions extending to Chinese utilities rity and industry in the short term, increased
should numbers go much higher. imports from Russia coupled to ramping up
For now, though, Beijing remains content domestic coal mining are another significant
with walking a fine line between profiting off blow to eventual carbon-neutral goals, according
cheaper imports and potentially upsetting the to the New Delhi-based Policy Research Group
increasingly vocal anti-Russian alliance led by (POREG) think-tank.
the UK and US. Figures for May, yet to be officially released,
To date there are no open indications at already show this trend to be continuing for the
least that Beijing is being forced into reducing time being, with almost 733,000 tonnes headed
imports of Russian coal, although the same does across Eastern Russia to the Chinese border in
not apply to imports of Russian oil, with Western the first two weeks of the month, according to
countries starting to take notice. one Shanghai-based heavy industry pricing and
Worries do exist that Russia increasing intelligence firm. ™

P8 www. NEWSBASE .com Week 22 25•May•2022