According to preliminary estimates, China became the largest buyer of Russian coal in 2022, importing 69.5 mio t (+16.5 mio t or +31% y-o-y).
This development, in particular, was due to attractive prices compared to other exporting countries. Exports to China were also supported by the Chinese embargo on Australian coal.
However, in early January 2023, the Chinese authorities decided to ease restrictions on Australian material, which is already putting additional pressure on coal prices. At the end of 2022, the discount for coal shipped eastward against the Australian benchmark was 60% versus 16.5% at the beginning of 2022. In addition, from April 2023, China will introduce a 6% duty on imports of thermal coal and a 3% duty on metallurgical coal.
Nevertheless, the Chinese government is still interested in securing Russian supplies, despite its changing position regarding coal imports from Australia.
According to some estimates, the total Russian coal exports in 2022 dropped to 194 mio t (-29 mio t or -13% y-o-y). The largest decline in supplies occurred in February because of logistic issues and in August as a result of the embargo imposed by the EU.
Source: CAA
