The Strategist

Reuters: China uses Australian coal despite refusing to import it

10/06/2021 - 07:19

Faced with a serious shortage of resources for power generation, China has started using coal from Australia again, Reuters reports.

Chinese leaders verbally banned major traders from importing coal late last year because of a conflict with Australian authorities. Relations between the two countries deteriorated significantly after the Australian government called for an international investigation into COVID-19 and to find those responsible for its spread around the world.

Now, traders say China is being forced to use Australian coal from temporary storage facilities. It is estimated that about a million tonnes of Australian coal have been stored in bonded warehouses along China's coast for months, but the coal has yet to be used.

China is facing an energy crisis amid rising oil, gas and coal prices. This has been driven by increased energy demand from Chinese industries ramping up production after the pandemic, as well as a drop in the country's coal production. Some regional governments have already had to limit power supply to industrial facilities, causing industrial output in China to fall for the first time in 18 months in September. Some regions also experienced massive power outages.


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