China Buys More Australian Coal as Appetite for Quality Builds
(Bloomberg) -- Australian coal continues to make inroads among Chinese buyers, adding to pressure on domestic prices, with new shipments climbing to their highest level since Beijing halted imports in the fall of 2020.
That ban ended at the start of this year and China’s appetite for the high-quality coal supplied by Australia is gaining momentum amid concerns that rising domestic production includes too much lower-grade fuel. Australian cargoes in April of mostly thermal coal for power plants surged 75% from the prior month to 3.89 million tons, according to Chinese customs data.
That puts Australia’s share of imports at 10%, almost double the level seen in March. Although a bigger volume of Australian coal was recorded in November 2021, those were previous shipments stranded by the ban that took as long as a year to clear customs.

At the same time, Russia’s coal exports to China dropped from the record level hit in March, as did its crude oil shipments. Seaborne Russian gas cargoes also fell from the previous month. The moderation in sales comes as Russian leaders visit Shanghai on Tuesday to help cement Moscow’s importance as a supplier of commodities to its eastern neighbor and strategic partner.
China’s total coal purchases fell slightly in April to 40.68 million tons, although that was still their third-highest tally ever and shipments have increased 89% over the year to date. The benchmark price at the port of Qinhuangdao has dropped to its lowest since the start of last year as the rising tide of imports lands at a time of seasonally weak demand.
Elevated stockpiles at Chinese ports could force traders to dump coal, pressuring prices further, before warming temperatures and improved economic activity help clear the surplus, according to a note from Fengkuang Coal Logistics.
The Week’s Diary
(All times Beijing unless noted otherwise.)
Tuesday, May 23
- Russia-China Business Forum in Shanghai
- SNEC Photovoltaic Power Expo in Shanghai, day 1
Wednesday, May 24
- CCTD’s weekly online briefing on Chinese coal, 15:00
- SNEC Photovoltaic Power Expo in Shanghai, day 2
Thursday, May 25
- Shanghai Futures Exchange Derivatives Forum, day 1
- SNEC Photovoltaic Power Expo in Shanghai, day 3
Friday, May 26
- China weekly iron ore port stockpiles
- Shanghai exchange weekly commodities inventory, ~15:30
- Shanghai Futures Exchange Derivatives Forum, day 2
- SNEC Photovoltaic Power Expo in Shanghai, day 4
- HOLIDAY: Hong Kong
Saturday, May 27
- China industrial profits for April, 09:30
On the Wire
Chinese energy giant State Power Investment Corp. is in advanced talks to buy Latin American power producer Inkia Energy Ltd. from I Squared Capital, according to people familiar with the matter.
China’s solar sector is accelerating an already world-beating pace of installations as costs tumble and demand keeps rising, putting it on track to rush past last year’s record.
©2023 Bloomberg L.P.
KEEPING THE ENERGY INDUSTRY CONNECTED
Subscribe to our newsletter and get the best of Energy Connects directly to your inbox each week.
By subscribing, you agree to the processing of your personal data by dmg events as described in the Privacy Policy.
More oil news

Oil Slips as Strengthening Dollar Outweighs Supply Tightness
Sep 26, 2023
Appeals Court Blocks Biden Bid to Limit Oil Drilling Auction
Sep 26, 2023
QatarEnergy announces 10-year Naphtha supply agreement with Marubeni Corporation
Sep 26, 2023
Lufthansa’s Austrian Unit Loses Greenwashing Suit Over Fuel Use
Sep 25, 2023
Oil Holds Rally as Hedge Funds Join Increasingly Bullish Bets
Sep 25, 2023
Macron Says France to Ask Oil Industry to Sell Fuels at Cost
Sep 24, 2023
Russia’s Diesel Exports Ban Is Risky for Moscow and World Alike
Sep 23, 2023
Trudeau’s Mega Pipeline Promises to Redraw Global Oil Flows
Sep 21, 2023
Oil Dips After Blistering Climb With Fed and Technicals in Focus
Sep 20, 2023
ENOC Group and Petrofac collaborate to foster Emirati talent in the energy sector
Sep 20, 2023
LNG to play a critical role in leading to a lower carbon future
Sep 26, 2023
Pushing for decarbonisation in the East Mediterranean region
Sep 25, 2023
Mexico Pacific president sees exciting times ahead
Sep 22, 2023
Sapphire Technologies CEO sees increased opportunities in climate tech
Sep 21, 2023
Technology to play a role in reusing wasted energy in a circular economy
Sep 20, 2023
Unlocking growth opportunities in sustainable finance
Jul 12, 2023
Decoding the trends shaping the future of energy
Jun 14, 2023
Exploring ESG’s critical role in the journey to net zero
May 18, 2023
Clearing the air on carbon markets in the Middle East
Apr 26, 2023
The IEA’s outlook for global energy markets and the energy transition
Apr 05, 2023Partner content

Investing in a sustainable future: unleashing Asia's $10 trillion renewable energy opportunity

Accelerating the Energy Revolution: key forces driving the transition

With BlueH2 by T.EN Technip Energies aims to unleash your full blue potential

Automation is the key to LNG present and the future scenario for hydrogen
