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SYDNEY/SINGAPORE — Shares of Australian coal miners jumped on Thursday after a Chinese language information website mentioned that speak of China ending its unofficial ban on imports of Australian coal, in place since October 2020, had not too long ago intensified.
Companies equivalent to Coronado Sources, Yancoal Australia , Whitehaven Coal and New Hope Corp all noticed shares rise between 6% and 10% on the report on commerce web site sxcoal.com, which was additionally cited by CN Wire.
“Rumors of easing the ban on Australian coal imports have been circulating not too long ago,” the commerce web site mentioned.
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The rumors gained foreign money after China’s overseas minister, Wang Yi, met his Australian counterpart, Penny Wong, final week throughout the summit of Group of 20 economies on the Indonesian resort island of Bali.
“There have been rumors final week saying the ban was to be lifted, and now the speak is intensifying after the 2 events met,” the web site added.
Bloomberg Information reported on Thursday, citing folks conversant in the matter, that Chinese language officers have been proposing to finish the import ban due to provide issues as a consequence of Western-led sanctions on Russia, and the proposal can be submitted to senior leaders.
Commenting on Wong’s request for China to raise its “commerce ban,” the commerce ministry mentioned on Thursday: “China hopes Australia can take pragmatic actions to create favorable circumstances for bilateral commerce relations.”
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China’s highly effective state planner, the Nationwide Growth and Reform Fee, didn’t instantly reply to a request for remark. Reuters has additionally contacted Chinese language customs authorities to hunt remark.
Business sources in Australia and China, who sought anonymity as the problem is a delicate one, instructed Reuters that they had heard nothing concrete, simply the rumors.
“We’ve not obtained any instruction from the federal government on Australian coal imports,” mentioned a coking coal dealer primarily based in China.
Australia’s commerce and sources minister declined to remark.
The Minerals Council of Australia, the business’s most important lobbying group, mentioned it was unaware of any change to China’s coverage.
Officers of high international metallurgical coal producer BHP Group weren’t instantly obtainable for remark.
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Australia’s metallurgical coal utilized in metal mills has been worst hit by the unofficial ban, particularly because it now trades at a really uncommon and steep low cost to thermal coal costs, that are booming on the again of the lack of Russian provide.
Probably the most-traded Dalian coking coal futures contract, for September supply, noticed little change on Thursday, hovering close to lows final seen in early February, as a consequence of a weak outlook for demand from Chinese language metal mills.
Benchmark Australian Newcastle thermal coal costs are at $400 a tonne, in comparison with about 1,200 yuan ($178.09) a tonne for China’s home coal, due to Beijing’s strict value management.
“Easing the ban or not doesn’t make a lot distinction,” mentioned a thermal coal dealer primarily based in Beijing. “Australian coal is simply too costly for China.”
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China has been stepping up coal imports from Russia, that are priced at a reduction in comparison with different sources, as many consumers have halted purchases from Russia within the wake of the Ukraine disaster.
Coal output and stock in China are excessive as Beijing has urged miners to ramp up manufacturing to make sure provides and power safety, whereas the nation’s COVID-19 lockdowns have curbed energy demand.
Whole China’s coal imports fell 18% within the first half of 2022 from a 12 months in the past.
($1=6.7381 Chinese language yuan renminbi) (Reporting by Sonali Paul in Sydney, Muyu Xu in Singapore, Dominique Patton in Beijing, Sudarshan Varadhan in New Delhi Extra reporting by Beijing newsroom Enhancing by Clarence Fernandez and Mark Potter)
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Article content material
SYDNEY/SINGAPORE — Shares of Australian coal miners jumped on Thursday after a Chinese language information website mentioned that speak of China ending its unofficial ban on imports of Australian coal, in place since October 2020, had not too long ago intensified.
Companies equivalent to Coronado Sources, Yancoal Australia , Whitehaven Coal and New Hope Corp all noticed shares rise between 6% and 10% on the report on commerce web site sxcoal.com, which was additionally cited by CN Wire.
“Rumors of easing the ban on Australian coal imports have been circulating not too long ago,” the commerce web site mentioned.
Commercial 2
Article content material
The rumors gained foreign money after China’s overseas minister, Wang Yi, met his Australian counterpart, Penny Wong, final week throughout the summit of Group of 20 economies on the Indonesian resort island of Bali.
“There have been rumors final week saying the ban was to be lifted, and now the speak is intensifying after the 2 events met,” the web site added.
Bloomberg Information reported on Thursday, citing folks conversant in the matter, that Chinese language officers have been proposing to finish the import ban due to provide issues as a consequence of Western-led sanctions on Russia, and the proposal can be submitted to senior leaders.
Commenting on Wong’s request for China to raise its “commerce ban,” the commerce ministry mentioned on Thursday: “China hopes Australia can take pragmatic actions to create favorable circumstances for bilateral commerce relations.”
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China’s highly effective state planner, the Nationwide Growth and Reform Fee, didn’t instantly reply to a request for remark. Reuters has additionally contacted Chinese language customs authorities to hunt remark.
Business sources in Australia and China, who sought anonymity as the problem is a delicate one, instructed Reuters that they had heard nothing concrete, simply the rumors.
“We’ve not obtained any instruction from the federal government on Australian coal imports,” mentioned a coking coal dealer primarily based in China.
Australia’s commerce and sources minister declined to remark.
The Minerals Council of Australia, the business’s most important lobbying group, mentioned it was unaware of any change to China’s coverage.
Officers of high international metallurgical coal producer BHP Group weren’t instantly obtainable for remark.
Commercial 4
Article content material
Australia’s metallurgical coal utilized in metal mills has been worst hit by the unofficial ban, particularly because it now trades at a really uncommon and steep low cost to thermal coal costs, that are booming on the again of the lack of Russian provide.
Probably the most-traded Dalian coking coal futures contract, for September supply, noticed little change on Thursday, hovering close to lows final seen in early February, as a consequence of a weak outlook for demand from Chinese language metal mills.
Benchmark Australian Newcastle thermal coal costs are at $400 a tonne, in comparison with about 1,200 yuan ($178.09) a tonne for China’s home coal, due to Beijing’s strict value management.
“Easing the ban or not doesn’t make a lot distinction,” mentioned a thermal coal dealer primarily based in Beijing. “Australian coal is simply too costly for China.”
Commercial 5
Article content material
China has been stepping up coal imports from Russia, that are priced at a reduction in comparison with different sources, as many consumers have halted purchases from Russia within the wake of the Ukraine disaster.
Coal output and stock in China are excessive as Beijing has urged miners to ramp up manufacturing to make sure provides and power safety, whereas the nation’s COVID-19 lockdowns have curbed energy demand.
Whole China’s coal imports fell 18% within the first half of 2022 from a 12 months in the past.
($1=6.7381 Chinese language yuan renminbi) (Reporting by Sonali Paul in Sydney, Muyu Xu in Singapore, Dominique Patton in Beijing, Sudarshan Varadhan in New Delhi Extra reporting by Beijing newsroom Enhancing by Clarence Fernandez and Mark Potter)
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