China's Aug coal imports from Russia, Indonesia soar as heatwave spurs power use




  • In Business
  • 2022-09-20 04:05:22Z
  • By Reuters
 

SINGAPORE (Reuters) -China's coal imports from Russia rose in August, exceeding last month's level and hitting the highest in at least five years, as power utilities in the world's biggest coal consumer sought overseas supplies to meet soaring demand in extreme hot weather.

Arrivals of Russian coal last month reached 8.54 million tonnes, up from the previous peak of 7.42 million tonnes in July and 57% higher than in the same period last year, data from the General Administration of Customs showed on Tuesday.

The monthly figure was the highest since comparable statistics began in 2017.

Imports from Russia have surged in recent months as Europe suspended purchasing from the country after it sent tens of thousands of troops into Ukraine, forcing Russian coal to be traded at a steep discount.

Prices for Russian coal have climbed as both China and India stepped up buying, traders said, but were still cheaper than the domestic coal of same quality.

Russian thermal coal at 5,500 kcal on delivery basis to China was assessed at about $155 a tonne in late August, up from about $150 a tonne a month earlier.

As severe drought and heatwave hit western and southern China from late July, coal-fired power plants geared up production to meet the spiking demand for air conditioning and the supply gap from hydropower stations.

They also increased purchases of higher quality thermal coal, such as Russian coal, to improve electricity generation efficiency.

China brought in 15.82 million tonnes of the dirty fuel from its top supplier Indonesia in August, 35% higher from July, data showed.

But that was still lower than the 17.3 million tonnes imported in August last year.

The increase of Indonesian coal purchases came as lucrative prices encouraged utilities to place more orders. In August, Indonesian 3,800 kcal thermal coal was about 170 yuan ($24.26) a tonne cheaper than the same quality Chinese coal, and 4,700 kcal coal was 140 yuan lower.

Power utilities are expected to increase imports in October to replenish stocks ahead of the kick-off of the heating season in most of northern China in mid-November.

However, as renminbi depreciation continues, imported coal will become more expensive for Chinese buyers and potentially dent demand.

($1 = 7.0066 Chinese yuan renminbi)

(Reporting by Muyu Xu; Editing by Christopher Cushing and Muralikumar Anantharaman)

COMMENTS

More Related News

Putin admits war is taking longer than expected,
Putin admits war is taking longer than expected, 'no talk' of annexing more of Ukraine: Live Ukraine Updates

Kremlin says there is "no talk" of seizing additional territories beyond the four Ukraine regions Russia claims to have annexed in recent months.

WNBA star Brittney Griner freed from Russian penal colony in prisoner swap
WNBA star Brittney Griner freed from Russian penal colony in prisoner swap
  • US
  • 2022-12-08 15:18:50Z

WNBA star Brittney Griner is free Thursday after the Biden administration negotiated her release from a Russian penal colony in exchange for an arms dealer.

UAE president, Saudi crown prince led mediation to release Griner -joint statement
UAE president, Saudi crown prince led mediation to release Griner -joint statement
  • US
  • 2022-12-08 14:43:28Z

DUBAI (Reuters) -The United Arab Emirates president and Saudi crown prince led mediation efforts that secured the release of U.S. basketball star Brittney...

Apple supplier Foxconn pushed China to ease COVID curbs - WSJ
Apple supplier Foxconn pushed China to ease COVID curbs - WSJ
  • US
  • 2022-12-08 14:39:12Z

The appeal, sent by Gou in a letter more than a month ago, played a major role in convincing China's leadership to quickly reopen the economy and move away...

Putin vows to persist with strikes in Ukraine, ignoring West
Putin vows to persist with strikes in Ukraine, ignoring West
  • World
  • 2022-12-08 14:34:43Z

The Kremlin said Thursday it's up to Ukraine's president to end the military conflict in the country, suggesting terms that Kyiv has repeatedly rejected...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

  • Angela J Quijada
    (2022-09-20 11:42:43Z)

    Great information about caol and need more articles related to coal and future of the world. are you looking for Painting services in Florida so Florida’s Choice Painting and Waterproofing here is the solution. Drywalls are very convenient when adding separate spaces in your home. Drywalls are economical, fireproof, and easy to repair, which makes them an ideal option for residential use.

    REPLY

Top News: Business