China shoots self in foot with coal blockade

Der, at Bloomie:

More than $500 million worth of Australian coal is on ships anchored off Chinese ports, as a diplomatic spat between the two countries cuts into trade, idles a portion of the world’s dry bulk carriers and threatens to spiral into a humanitarian crisis.

More than 50 vessels have been waiting a month or longer to offload coal from Australia, according to separate analyses of shipping data conducted by Bloomberg and data intelligence firm Kpler. There’s about 5.7 million tons of coal and approximately 1,000 seafarers on the anchored vessels, which are mostly Capesize and Panamax-sized vessels, according to Kpler.

Double der, at AFR:

China is paying through the nose for coal from North America while it rejects or defers shipments from Australia.

The high-priced coal buying was revealed in an update from Toronto Stock Exchange-listed Teck Resources, which said it had boosted sales into China and achieved a huge premium on Australian product.

Teck said it had seen increased demand and sales into China since the start of October, around the same time political tension between Canberra and Beijing were linked to Australian shipments being spurned or delayed.

…“Our contract sales to Chinese customers are also priced on the basis of CFR China price assessments. The most recent three cargoes were sold at prices between $US160 a tonne and $US165 a tonne CFR China.

Lol, $165. It’s available from QLD for $104. Triple der:

China says that it found many imported Australian coals failed to meet environmental standards.

And what has it achieved? Complete alienation from the Australian people and its democratic rivals rallying worldwide.

David Llewellyn-Smith
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Comments

    • Its because this country is so hot, that it bakes extra thermals into the thermal coal. Thats what makes our coal so thermally.

    • UpperWestsideMEMBER

      Unicorn poo (UniPoo[tm]) – a couple of shipments were contaminated with UniPoo[tm] and now every shipment needs to be properly vetted.
      The problem is UniPoo[tm] is invisible ( obviously) so each piece of coal needs to be hand picked, brushed with a fine sable brush to detach any UniPoo[tm], wrapped in silk, boxed and bowed for delivery. Only coal pieces conforming to the politically correct aesthetic are acceptable and it takes trained eye and steady hand to deliver the goods to these exactling ISO standards. This takes some time as the required workers are highly skilled and hard to source in bulk at short notice.
      I for one applaud our friends for their consistent commitment to environmental concerns.

    • ErmingtonPlumbingMEMBER

      It’s called lying.
      They Wouldn’t want to tell the truth and be in contravention of all them shyte “Free trade” agreements they’ve signed and insist everyone else adheres to.

      On a side note
      I was looking at Eskies today at Bunnings and liked the Retro metal Esky but noted it was Chinese made.
      Couldn’t find an Aussie made one but did note a few Thai and indian made ones.
      I’ll get one of them if I can’t get an OZ made one.

      • Same. A month or so ago I bought tyres made in Thailand (Dunlop) instead of the Goodyear made in China. And a mic stand made in Germany rather than a cheaper one from China. The guy in the music shop gave me a $10 discount, I assume because of sympathy towards not buying Chinese (I made my reasons clear). Pity I couldn’t find these things made here, they would have been my first choice.

  1. mid-$60s vs $165 ????

    How is this even possible ?, are we leaving that much money on the table ? I dont get it

    • It’s like it’s wine. We’re Australian. We like giving it away for a lot less than it cost to produce. We Have a long and glorious history of doing that which is why they need to ensure we’re not dumping the stuff!

    • Royale With Cheese

      It’s a bit of a misleading comparison. Teck only produce metallurgical coal which is always more expensive, Newcastle exports are thermal coal. Search for Peak Downs coal for a better price reference, I think it’s around US$130/t now

    • Mid 60’s ? Are you talking thermal coal for power generation ? That is entirely different to metallurgical coal for steel manufacturing which is currently approx US$98

    • Taking Australias supply out of the supply-demand equation has probably pushed the price up quite a bit.

    • Agree.

      This is a distinct lack of cartelier behaviour going on amongst the producers.

      As Pauline says, I don’t like it.

  2. 50 ships idle outside Chinese ports. I guess that’s 50 ships not available to deliver coal from other places either, which should further constrain supply.
    Also, last I heard a large ship runs something like $50k per day to operate – I wonder who gets to foot that bill?

    • My guess is the company importing the coal, so effectively the chinese government at the top of the chain. They just see it as a cost of punishing australia,

  3. ‘Wolf Wankers’ tends to be government officials with neither aptitude or intelligence, thus their only way to advance is to furiously toe the party line to demonstrate their loyalty to Emperor Xi. They are the kind of people who can’t edit a video together, so they use footage from Hollywood movie in their propaganda piece. These kind of morons now run China’s foreign policy. That’s why you have these ‘cut off the nose to spite the face’ policies.

    There are many instance in Chinese history where the Emperor elevated someone whose only accomplishment is arse licking, and ends up in a total disaster. The most famous if this one.

    https://en.wikipedia.org/wiki/Tumu_Crisis

    The Chinese army had 500K against 20k, and the Mongol army won and captured the Chinese Emperor.

    • Might want to have a look in the aussie parliament, I’m pretty sure arse licking is high on the skill set for our “representatives”.

    • wolfies arent effective in any discernible way
      frinstance wrt barley..at the commencement of wolfie wank the price = ~$220/t
      current price in spite of wolfie wank =~$270/t
      Wolfiewank may have influenced a price inversion where feed sometimes is more expensive than malt.
      Big deal wolfies …barley at $270/t is yoojly lucrative and oz producers are doing fine..DLS mention fungible?

  4. I drove up the coast past Newie the other day and saw half a dozen coal ships off the coast.
    It’s a long way from the days when you’d see over 30 ships lined up to load coal but it’s a start.
    Does anyone know why the coal ships have returned?

  5. We really must increase the price of our dirt exports by, oh, say 135%

    This will go some way to covering the cost of the hand-combing necessary to remove the iron-ore mites.

  6. Where is that eating popcorn GIF?

    How long can they last I wonder? How big are their stockpiles of our coal?

    • As long as the PBOC prints, in fact they don’t even need to now they have a third currency, digital Yuan! 😂

    • China, the world’s biggest producer, remains at 4% annual growth rate, at 3,693 Mt in 2019.
      China import 10% on top of this so 300mt. Maybe better quality too, but they will manage by other ways if it means giving us a blood nose

  7. rob barrattMEMBER

    Only the Chinese in the street gets shot in the foot. Members of the CCP committees are doing just fine thank you.

  8. A gambit (from ancient Italian gambetto, meaning “to trip”) is a chess opening in which a player, more often White, sacrifices material, usually a pawn, with the hope of achieving a resulting advantageous position

  9. innocent bystanderMEMBER

    good to see Chyna putting its yuan where its mouth is – taking a financial hit to uphold its enviro standards.

  10. Going to see some coal miners furloughed soon me thinks !!
    Thank god Scummo has cooked up as gas recover to sell gas to , …. oh wait, …. China.