For modern society, energy is the most essential resource for the normal operation of the entire society and economy. A country's electricity consumption is even used as one of the indicators to measure the level of economic development, and the same is true for coal.
As the world's second largest economy, China imports hundreds of millions of tons of coal every year. Australia, which was originally China's largest source of coal imports, has fallen out of favor in the Chinese market due to various factors. Recently, the Australian coal industry has received another bad news.
According to the Asia-Pacific coal business director of consulting firm Wood Mackenzie, global thermal coal prices have plummeted by nearly 60% since global coal demand began to decline in February, and 31% of Australian thermal coal will Exports are facing losses. Because 58% of seaborne thermal coal is produced at a higher price than the price on May 7, this means that the Australian thermal coal industry is likely to face huge losses.
This is not just the case for Australia’s thermal coal industry, but also for other “intermediate” coal product prices, which have suffered their worst decline since 2015. According to a report by the Australian Financial Review on May 11, the price of high-quality coking coal in Queensland has fallen by 30% so far, and most other types of coal have fallen to their lowest prices. If Australian coal prices show no signs of rising in the future, more mines are expected to close.
Unlike the Australian coal industry, which is at a trough, the situation of Russian coal is much better. This is mainly due to the fact that Russia continued to export coal to China even at the beginning of the COVID-19 epidemic, which enabled Russia to receive many orders. It is reported that Russia is currently China's third largest source of coal, and China is Russia's largest coal export market. Therefore, the Russian Ministry of Energy has set a goal of doubling coal exports to China in the next 10 years, reaching a level of 55 million tons.
According to international energy network , citing a document from the Russian Ministry of Energy, Russia aims to export coal to 200 million tons by 2025, replacing Indonesia to become one of the world's major coal exporters. And if coal exports to China can reach 55 million tons, then the possibility of reaching Russia’s coal export target of 200 million tons in 2025 will also be greatly increased.
Source: Jinshi Data
Editor: Wang Yue
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