China power cuts could force it to import Australian coal again
China’s power crisis, which has seen rolling blackouts and factories shut down, and warnings that its coal supply is only enough to last for another two weeks may mean the country is forced to crawl back to Australian supplies.
More than two-thirds of China’s electricity comes from coal-fired plants and while 90 per cent is supplied from domestic production, the country used to import $1 billion worth of Australian coal.
However, earlier this year amid increasing diplomatic tensions between the two countries, China banned imports of Australia’s third biggest export.
Now it’s facing coal shortages that would be difficult to meet demands by ramping up domestic production at short notice, which means China will be looking outside to bring in more coal.
With coal in short supply globally some experts believe that it could force Beijing to ease its ban on buying up the Aussie commodity.
Link - https://www.news.com.au/finance/eco...n/news-story/25675109eb6e2a0ae694b60ec1da2508
