mandag 30. november 2020

Australian coal exports face 'perfect storm' as China restrictions hit

Australian coal exports face a GFC-style threat to their viability, one of the country's top insolvency experts will claim as Chinese import restrictions, reduced demand and funding for renewables wipes out key markets.

McGrathNicol’s chairman Jason Preston will on Tuesday say the escalation of China’s trade restrictions completes "a perfect storm" for coal exporters, as dozens of ships carrying up to $700 million worth of coal remain stranded off the Chinese coast unable to unload their cargo. Chinese imports of Australian coking coal fell by more than 20 per cent in October compared to the same time last year, Commonwealth Bank analysis shows. At the same time as local state-backed miners ramp up production and China increases its imports from Canada, Russia and Mongolia. Australia exported up to $14 billion worth of coking and thermal coal to China in 2018-19.