- Write by:
-
Monday, December 21, 2020 - 12:31:01 PM
-
454 Visit
-
Print
Mining News Pro - Australia’s coal producers may have to start cutting output if China maintains limits on imports from them, the Australian government said on Monday, forecasting a sharp fall in coal export revenue this year.
China is the second-biggest buyer of Australia’s thermal coal burned in power plants and metallurgical coal used to make steel.
But Australia’s coal exports have been hit by delays at Chinese ports and prices have fallen amid a growing row between the two countries, after Australia called for an enquiry into the origins of the novel coronavirus pandemic.
“The bottom line for Australian coal producers is lower profitability and the likelihood of production cuts the longer the Chinese restrictions remain in place,” the Australian Department of Industry said in its quarterly resources and energy outlook.
Chinese media on Monday reported that China’s top economic planner had granted approval to power plants to import coal without clearance restrictions, except from Australia.
China’s foreign ministry spokesman later said he was not aware of the situation but the competent authority had been adopting relevant measures on goods imported from Australia.
Metallurgical coal export revenue is expected to slump 35% to A$22 billion ($17 billion) in the year to June 2021 from a year earlier, the Department of Industry said in its report.
The forecast is A$1 billion lower than the previous outlook in September, as prices for Australia’s metallurgical coal fell in the December quarter. Volumes are expected to fall around 5%.
“The recovery of Australian metallurgical coal prices will largely depend on Chinese government policy and signals,” the department said.
Thermal coal export revenue is forecast to drop 29% to A$15 billion, in line with its previous outlook.
Volumes are expected to fall nearly 7% to 199 million tonnes after suffering their largest quarterly fall in the September quarter since records dating back to 1988, the department said.
Nevertheless, the government raised its outlook for total resources and energy exports for the year to June 2021 to A$279 billion, up 9% from its September outlook, thanks to soaring iron ore prices.
Iron ore export revenue is expected to climb to a record high of A$123 billion, up 20% on last year, supported by strong Chinese demand and supply problems in Brazil.
Short Link:
https://www.miningnews.ir/En/News/609819
Australian miner Lynas posted a slump in third-quarter sales revenue on Wednesday, missing analyst expectations on the ...
Anglo American Plc said it is has received an unsolicited non-binding combination proposal from BHP Group.
A key measure of Chinese copper demand just sank to zero, another indication that global prices are not balanced with ...
Australia’s Fortescue on Wednesday logged a larger-than-expected decline in third-quarter iron ore shipments, following ...
Iron ore futures prices ticked lower on Monday, weighed down by diminishing hopes of more stimulus in top consumer ...
China’s state planner on Friday finalized a rule to set up a domestic coal production reserve system by 2027, aimed at ...
Chile’s SQM called another investors meeting at the request of its second-largest shareholder, Tianqi Lithium Corp., ...
The world’s coal-fired power capacity grew 2% last year, its highest annual increase since 2016, driven by new builds in ...
Peabody Energy Corp. shares sunk to the lowest in seven months after the biggest US coal miner warned that first-quarter ...
No comments have been posted yet ...