China slashed coal imports from Russia in January-February 2024 to 11.5 mio t (-2.1 mio t or -22% y-o-y), as a result of a decline in competitiveness of Russian material after the import duties were reintroduced by China at 6% for thermal coal and 3% for coking coal and anthracite.
Meanwhile, China expanded its total imports over this period to 74.5 mio t (+14 mio t or +23% y-o-y), with Russia’s share estimated at 15.4% (flat y-o-y).
The Chinese authorities reinstated duties in early 2024, but other major exporters, including Indonesia and Australia, were not affected and their shipments, instead, increased owing to free trade agreements. The return of duties was aimed at protecting local coal companies from the effects of a market glut after China’s domestic production rose to a record high.
Buyers’ interest in China towards Russian material is also constrained by the US sanctions imposed on major Russian coal companies (SUEK and Mechel).
Negative dynamics in Russian coal exports will continue this year also, resulting from the newly introduced export duty in Russia, high transshipment rates in Taman and limited transportation capacity on the railway infrastructure.
Source: CAA
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