China’s ban on Australian coal drives diversification, but can it fill the gap?

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By Su-Lin Tan | South China Morning Post

In December, South Africa dispatched fresh shipments of thermal coal to China for the first time since 2014, with word in the industry that more was on the way.

A month earlier, Chinese buyers also snapped up coal from Colombia, which has never been a big seller to China because of long shipping times when compared to regional suppliers such as Australia and Indonesia.

Historically, South African coal has not been allowed into China because it contains restricted trace elements like fluorine, while Colombian coal is usually viewed as a back up option when regional prices blow out.

That China has embraced thermal coal from both countries in recent months underscores just how unwilling it is to trade with one of its biggest coal suppliers: Australia…Full Story

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