China thermal coal ban to hit Oz?

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Yesterday China introduced new environmental standards on coal. From the AFR:

Wood Mackenzie’s China consulting manager Rohan Kendall said none of the Australian thermal coal currently being exported to China would meet the new restrictions in China’s major cities.

However, he said “it won’t be difficult for producers to meet the cut-off”. They will just have to wash the coal, which could increase the cost of production.

Industry sources said the government moves were aimed at propping up the domestic coalminers, as well as assisting the power generators.

In China, “both the miners and the power companies are doing it hard in the slowdown, and the measures are aimed at giving both some room to manoeuvre,” one industry source said.

You can’t have it both ways. I will aim to dig some more on this today.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.