/CHINA: The Global Times Weighs In On The Coal Issue

An article in China's state-owned Global Times has focused on the Sino-Aussie coal trade issue that has become a focal point since emerging late last week. It notes that:

• "Australia's coal exports are set to suffer this year, as Chinese coal importers are expected to suspend purchasing from Canberra, citing a domestic supply glut and Chinese government's environmental protection push…Although Chinese authorities have not offered a clear answer when asked about this issue, experts noted that the deteriorating bilateral relationship is set to lead trade relations to a dead-end that Australia can hardly bear.
• A veteran industry insider told the Global Times on Tuesday that Chinese importers may also be subject to purchase restrictions, in line with the country's increasing efforts to curb carbon emissions and protect the environment… An insider close to the Port of Dalian in Northeast China's Liaoning Province, which is China's 10th-largest port, told the Global Times on Tuesday that it had not received any official notice to halt coal imports from Australia as of Tuesday."
• All in all, the report is in line with sell side commentary from recent days, pointing to national purchase restrictions providing at least some explanatory power to any such halt in imports of Australian coal, meaning that while Sino-Aussie relations may also factor into the decision, they may not be the driving factor.