AIRLINK 78.39 Increased By ▲ 5.39 (7.38%)
BOP 5.34 Decreased By ▼ -0.01 (-0.19%)
CNERGY 4.33 Increased By ▲ 0.02 (0.46%)
DFML 30.87 Increased By ▲ 2.32 (8.13%)
DGKC 78.51 Increased By ▲ 4.22 (5.68%)
FCCL 20.58 Increased By ▲ 0.23 (1.13%)
FFBL 32.30 Increased By ▲ 1.40 (4.53%)
FFL 10.22 Increased By ▲ 0.16 (1.59%)
GGL 10.29 Decreased By ▼ -0.10 (-0.96%)
HBL 118.50 Increased By ▲ 2.53 (2.18%)
HUBC 135.10 Increased By ▲ 2.90 (2.19%)
HUMNL 6.87 Increased By ▲ 0.19 (2.84%)
KEL 4.17 Increased By ▲ 0.14 (3.47%)
KOSM 4.73 Increased By ▲ 0.13 (2.83%)
MLCF 38.67 Increased By ▲ 0.13 (0.34%)
OGDC 134.85 Increased By ▲ 1.00 (0.75%)
PAEL 23.40 Decreased By ▼ -0.43 (-1.8%)
PIAA 26.64 Decreased By ▼ -0.49 (-1.81%)
PIBTL 7.02 Increased By ▲ 0.26 (3.85%)
PPL 113.45 Increased By ▲ 0.65 (0.58%)
PRL 27.73 Decreased By ▼ -0.43 (-1.53%)
PTC 14.60 Decreased By ▼ -0.29 (-1.95%)
SEARL 56.50 Increased By ▲ 0.08 (0.14%)
SNGP 66.30 Increased By ▲ 0.50 (0.76%)
SSGC 10.94 Decreased By ▼ -0.07 (-0.64%)
TELE 9.15 Increased By ▲ 0.13 (1.44%)
TPLP 11.67 Decreased By ▼ -0.23 (-1.93%)
TRG 71.43 Increased By ▲ 2.33 (3.37%)
UNITY 24.51 Increased By ▲ 0.80 (3.37%)
WTL 1.33 No Change ▼ 0.00 (0%)
BR100 7,493 No Change 0 (0%)
BR30 24,558 No Change 0 (0%)
KSE100 72,052 No Change 0 (0%)
KSE30 23,808 No Change 0 (0%)

BEIJING/CHENNAI: India and Indonesia have emerged as key beneficiaries of a Chinese ban on Australia’s coal exports which is expected to further shift global trade in the fuel used for power generation and steelmaking this year.

Australia, the world’s biggest coal exporter, will continue to benefit from growing Indian demand for its coal, made cheaper after it was shunned by China, analysts said. Coal traders and buyers expect India’s buying spree of Australian coal to last into next year due to its price and quality.

China has targeted various Australian products with unofficial import restrictions since March 2020 as relations between the two countries soured.

The ban has also benefited coal exporters in Indonesia, Mongolia and Russia as China’s buyers switched suppliers, according to the latest Chinese customs data. Indonesia’s coal miners signed a $1.5 billion supply deal with China in November.

“Global trade flows will be self-adjusting with Australian coal flowing to Indian and European markets and South African and Colombian sources coming into China,” said Winston Han, chief analyst from China Coal Transportation and Distribution Association at a Coaltrans seminar this week.

As the largest consumer of most commodities apart from oil, China has long had a heavy influence on resources trade through its sheer size. But the ban has particularly benefited Indian buyers, while Chinese importers are complaining that they are having to pay more for lower quality coal from other countries.

Indian cement companies last year started snapping up cargoes of Australian coal that were being offered at steep discounts after being turned away from China, said Kirit C Gandhi, joint president at Indian cement firm Shree Cement .

India became the second-biggest buyer of Australian thermal coal in February, according to data from consultancy Lavi Coal Info, as it bought less coal from its traditional suppliers Indonesia and South Africa.

Australia, already India’s biggest supplier of metallurgical coal, accounted for around 20% of India’s thermal coal imports in the first two months of 2021, up from a little over 4% on average in 2020, according to data from Lavi Coal Info.

Comments

Comments are closed.