ALTHOUGH at least 10 Australian coal ships carrying more than 940,000 tonnes of coal were reported to have unloaded in Chinese ports last month, more than 80 vessels with another 8.8 million tonnes are sitting at anchor, unable to move, Australian sources say.
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Many of the ships will be carrying thermal or steaming coal bound for power stations and exported from Newcastle, with most of the rest carrying coking coal for steelmaking out of Queensland ports.
China says the queue is about 50 but whatever its size, the effective block on Australian coal is a major symbol of the deteriorating trade and diplomatic relations between us and our largest trading partner.
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The delays have lowered the share prices of Australian coal companies although prices from coal out of Newcastle are rising, partly because of storm damage to an NCIG coal loader that could take months to repair.
Trade Minister Simon Birmingham says Australia is "seeking clarity" from China to ensure there is not "discriminatory action against Australian coal".
China uses more than 4 billion tonnes of coal a year but its imports are usually less than 300 million tonnes. Indonesia accounts for about half of China's seaborne coal needs, followed by Australia.
Last week China and India signed a three-year deal designed to lift imports from Indonesia to 200 million tonnes a year.
The Singapore-based Straits Times said the deal had "the potential to further weaken trade ties with rival supplier Australia".
It traced the deteriorating relations to Australia's 2018 decision to ban Huawei from bidding for the 5G network.
China says any delays for Australian coal are a result of it not meeting environmental quality and certification.
Last week, a Chinese Foreign Ministry spokesperson said Customs had found "a large proportion" of Australian coal not up to standard.
China's Global Times reported on Sunday that demand for Australian coal would fall and its exporters "likely to miss a windfall" as Chinese industry recovered in 2021, but while following government policy.
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IN THE NEWS
Ian Kirkwood
Reporting journalist at the Newcastle Herald since 1987. Editorial writer, general reporter, industrial relations, industry and coal.
Reporting journalist at the Newcastle Herald since 1987. Editorial writer, general reporter, industrial relations, industry and coal.
