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Exports to China decline as Australia seeks delay in explanation

Chinese customs did not say there was an Australian coal ban on Tuesday, but said they would “further strengthen import supervision” on Australian exports.

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Chinese commodity site MySteel said many importers have already reached this year’s quota, but traders have informed at a confidential coal import conference at the end of September that they need to consider 2021 imports. It had been. horizon.

The allocation is intended to ensure that local coal, which can be up to 60% higher than Australia, is purchased by energy suppliers and steel mills to stimulate the economy. In many cases, the annual quota will be filled by the end of the year, forcing importers to return to their local markets.

Trade Minister Simon Birmingham said there was turmoil in shipments, but that was “not unusual.”

“It’s not the first time in a few years that the timing and ordering of coal exports, especially to China, can be disrupted,” he said.

Senator Birmingham has “seriously” received reports of verbal instructions and is seeking assurance from Chinese authorities that he respects the terms of the China-Australia free trade agreement and the obligations of the World Trade Organization. Said.

Tania Constable, CEO of the Minerals Council, said trade with China changed throughout the year due to a variety of factors. “Australia continues to see demand for high-quality coal, and the medium-term outlook remains bright,” he said.

Ernst & Young, an adviser to a major domestic mining company, said the latest regulations have not led to the cancellation of Australian cargo to date.

“I’m worried about asking if that’s true, but our sources show that the order hasn’t been canceled,” said Paul Mitchell, EY’s mining leader. “Until that happens, it’s a further approval of the precarious times we live in.”

Geopolitical issues have emerged as some of the biggest risks to the country’s mining industry over the past year, Mitchell said.

“We have advised the sector to conduct a comprehensive scenario analysis to anticipate or plan potential changes in geopolitical turmoil and regulatory changes,” he said. It was. “In times of turbulence, nothing is commonplace.”

Eryk Bagshaw is a Chinese correspondent for The Sydney Morning Herald and The Age. Due to travel restrictions, he is currently based in Canberra.

Business reporter for The Age and Sydney Morning Herald.

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Exports to China decline as Australia seeks delay in explanation

Source link Exports to China decline as Australia seeks delay in explanation

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