<p>China’s imports of coking coal plummeted in 2021, as the country strived to diversify its sources amid an unofficial ban on Australian coal and coronavirus pandemic-hit Mongolian imports. China has imported 54.7 million tonnes of coking coal in 2021, down 25% YoY. Mongolia was China’s biggest source for coking coal last year, but the supply was heavily impacted by virus-induced border closures and restriction at major land ports. In 2021, China imported 14.04 million tonnes of coking coal from Mongolia, down by 41% compared with a year earlier. Steel mills have as a result turned to other sources for coking coal, with imports from Russia up by nearly 60% to 10.67 million tonnes in 2021. Shipments from the United States also surged almost tenfold to 10.18 million tonnes, while imports from Canada also almost doubled to 9.27 million tonnes</p><p>China had previously relied heavily on Australia and Mongolia for coking coal, with combined imports accounting for 86.7% of total imports in 2019. China imposed unofficial bans on the imports of a variety of Australian products- including coal, lobsters and log timers in late 2020, after Canberra supported calls for an international investigation into China’s handling of the coronavirus outbreak. China only started to allow Australian coking and thermal coal that had been stranded at its ports due to an unofficial ban to be imported in the final three months of 2021. Among the coking coal imports, 11.3% or 6.17 million tonnes, was imported from Australia since October. 5.54 million tonnes of Australian thermal coal, which is used for power generation, was also imported in the final three months of last year when the country was faced with a power crunch due to a severe coal supply shortage. Most of the Australian coal that was being held at Chinese ports has now been cleared</p><p>It is expected that China’s appetite for imported coking coal may partially recover this year, but is still not expected to reach the pre-pandemic level. As steel output in China may also slow in line with industrial production and GDP growth, which are both softening</p>
<p>China’s imports of coking coal plummeted in 2021, as the country strived to diversify its sources amid an unofficial ban on Australian coal and coronavirus pandemic-hit Mongolian imports. China has imported 54.7 million tonnes of coking coal in 2021, down 25% YoY. Mongolia was China’s biggest source for coking coal last year, but the supply was heavily impacted by virus-induced border closures and restriction at major land ports. In 2021, China imported 14.04 million tonnes of coking coal from Mongolia, down by 41% compared with a year earlier. Steel mills have as a result turned to other sources for coking coal, with imports from Russia up by nearly 60% to 10.67 million tonnes in 2021. Shipments from the United States also surged almost tenfold to 10.18 million tonnes, while imports from Canada also almost doubled to 9.27 million tonnes</p><p>China had previously relied heavily on Australia and Mongolia for coking coal, with combined imports accounting for 86.7% of total imports in 2019. China imposed unofficial bans on the imports of a variety of Australian products- including coal, lobsters and log timers in late 2020, after Canberra supported calls for an international investigation into China’s handling of the coronavirus outbreak. China only started to allow Australian coking and thermal coal that had been stranded at its ports due to an unofficial ban to be imported in the final three months of 2021. Among the coking coal imports, 11.3% or 6.17 million tonnes, was imported from Australia since October. 5.54 million tonnes of Australian thermal coal, which is used for power generation, was also imported in the final three months of last year when the country was faced with a power crunch due to a severe coal supply shortage. Most of the Australian coal that was being held at Chinese ports has now been cleared</p><p>It is expected that China’s appetite for imported coking coal may partially recover this year, but is still not expected to reach the pre-pandemic level. As steel output in China may also slow in line with industrial production and GDP growth, which are both softening</p>
