China coal dilemma

Respectfully, we do get to decide.

The balance of sequestered carbon needs to be the determining factor.

A simplistic profit motive is not good enough.

Whoosh!!

EOM

2 Likes

That is alright.

I do think the US has the ability to expand coal production and thus increase exports.

There is no way to ship coal to China from the US except via the Panama Canal. Therefore it is much cheaper to get Russian coal to China. Furthermore, China has enough coal to supply its own needs.

China Lets In Most of the Australian Coal Stranded at Its Ports
https://finance.yahoo.com/news/china-lets-most-australian-co…
Customs data for the final quarter of last year show 6.2 million tons of Australian coking coal were finally allowed in, along with another 5.5 million tons of thermal coal that was destined for power plants from China’s former trading partner for the fossil fuel…

The upshot is that the ban on Australian coal has created some unlikely winners. China doesn’t produce enough of the higher-grade coking coal and was for a long time reliant on Australian mines. But pandemic controls have choked the flow of shipments from neighboring Mongolia, another top supplier, leaving exporters in the U.S. and Canada – hardly nations favored by Beijing – to pick up the slack.

Even as China’s total coking coal purchases dropped by about a quarter to 55 million tons last year, the amount arriving from the U.S. grew nearly 10 times to account for almost 20% of China’s imports, according to Fengkuang. Meanwhile, Canadian shipments doubled to nearly the same portion.

DB2

I do think the US has the ability to expand coal production and thus increase exports.

There is no way to ship coal to China from the US except via the Panama Canal. Therefore it is much cheaper to get Russian coal to China. Furthermore, China has enough coal to supply its own needs.

https://www.westshore.com/#/main

Operating since 1970 in Port Metro Vancouver, Westshore is the terminal of choice for Canadian coal mines and for United States mines in the Powder River Basin of Montana and Wyoming.

I thought everyone knew that!

Anymouse

3 Likes

The resumption is also a reminder of their economic interdependence as Australia’s raw materials play a crucial role in fuelling the export-oriented economy of China, the world’s biggest coal consumer and producer…

Rising prices amid the Russian sanctions and an expected jump in Chinese coal demand - as much 2% more in 2023 than last year, according to Wood Mackenzie analysts - after the end of its COVID restrictions has renewed the energy security concerns.

DB2