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Russian Coal to Asian Markets Constrained by Infrastructure

COAL

Russian coal exports to China have jumped by a third this year but further volumes are being constrained by logistical constraints according to Reuters reports.

  • China is a key market for Russian coal due to western sanctions and its demand for coal is expected to grow in the winter months.
  • A lack of coal export capacity is delaying cargoes between the nations by weeks.
  • China's coal imports from Russia fell to 6.95 million tonnes last month, down from a peak of 8.54 million tonnes in August, according to China's customs data.
  • According to Russian government expectations, total coal exports may fall by 22% this year and by a further 31% in 2023 due to western sanctions and a lack of infrastructure to direct them east.
  • Russia is working on developing the capacity of its eastern ports to send more energy volumes towards the Asian markets in the years ahead.
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