AUSTRALIA – COMMERCE – CHINA

Aussie miners hit by China coal curbs

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Original article by Michael Smith, Peter Ker
The Australian Financial Review – Page: 17 & 22 : 27-Sep-18

China’s imports of thermal coal rose 18.2 per cent year-on-year in the first eight months of 2018, according to official data. Thermal coal imports from Australia were up almost 27 per cent in the first seven months of the year. Meanwhile, the Chinese Government has reportedly introduced import quotas on thermal coal at some of the nation’s major ports in a bid to boost demand for Chinese coal. The bulk of China’s coal imports in 2017 were sourced from Indonesia, and a China-based trader says that nation will be harder hit by the import quotas than Australian coal producers.

CORPORATES
NEW HOPE CORPORATION LIMITED – ASX NHC, UBS HOLDINGS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, WHITEHAVEN COAL LIMITED – ASX WHC, BHP BILLITON LIMITED – ASX BHP, YANCOAL AUSTRALIA LIMITED – ASX YAL, SOUTH32 LIMITED – ASX S32

China looks to Australian gas in trade war

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Original article by Glenda Korporaal
The Australian – Page: 19 & 27 : 26-Sep-18

Wang Shouwen, China’s vice-minister of commerce, has signalled that the nation could increase its LNG imports from Australia as a result of the trade war with the US. China retaliated to the Trump administration’s latest round of tariff hikes by imposing a tariff of 10 per cent on US LNG imports, and this could rise to 25 per cent. The tariff on US LNG will give Australian producers a price advantage, and could ensure that new LNG projects in Australia and Papua New Guinea proceed.

CORPORATES
CHINA. MINISTRY OF COMMERCE, WOODSIDE PETROLEUM LIMITED – ASX WPL, CHEVRON CORPORATION, SANTOS LIMITED – ASX STO, OIL SEARCH LIMITED – ASX OSH, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Long-term deals key to iron-clad alliance

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Original article by Glenda Korporaal
The Australian – Page: 20 : 24-Sep-18

BHP Billiton, Rio Tinto and Fortescue Metal Group were among the Australian iron ore companies that were represented at the recent China International Steel & Raw Materials Conference. Australia currently supplies 62 per cent of China’s seaborne iron ore, with iron ore being Australia’s biggest export to China. Businesses involved in commerce between Australia and China are hopeful that the relationship between the two countries, which has been somewhat strained in recent times, will improve under new Prime Minister Scott Morrison.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD, VALE SA, UNIVERSITY OF NEW SOUTH WALES, WORLD TRADE ORGANIZATION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Fortescue on Belt and Road to riches

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Original article by Glenda Korporaal
The Australian – Page: 17 & 18 : 9-Jul-18

Fortescue Metals Group’s CEO Elizabeth Gaines has urged Australian firms to make the most of China’s Belt and Road Initiative. Countries that come under the BRI have a combined population of more than four billion. Gaines notes that steel is expected to underpin the infrastructure needed for the BRI, from which Fortescue could be expected to benefit as a major supplier of iron ore to China. Fortescue has been selling iron ore to China for 10 years, and Gaines notes that it supplies 17 per cent of China’s seaborne iron ore.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

China delivers trade warning amid strain on ties

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Original article by Glenda Korporaal
The Australian – Page: 1 & 2 : 19-Apr-18

Cheng Jingye, China’s ambassador to Australia, says relations between the two nation have become increasingly strained since mid-2017. The Federal Government’s proposed foreign interference laws have been a particular concern for China, even though no specific country has been identified as a target for the laws. Cheng has urged action to improve relations and mutual trust between the two nations, arguing that China presents a massive trade opportunity for Australia. He adds that failure to improve relations could have trade implications for Australia.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, ASSOCIATION OF SOUTH-EAST ASIAN NATIONS, BOAO FORUM FOR ASIA, FORTESCUE METALS GROUP LIMITED – ASX FMG, GROUP OF TWENTY (G-20)

China moves to put a price on carbon

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Original article by Angus Grigg, Ben Potter, Lisa Murray
The Australian Financial Review – Page: 1 & 6 : 3-Oct-17

China will launch an emissions trading scheme by the end of 2017. The ETS is expected to initially cover power stations, but it will be expanded to cover a range of other industries by 2020, including steel and aluminium production. The ETS could be expected to have a detrimental impact on the level of Australian coal exports to China, currently worth $A8 billion a year, and comes at a time when other regional consumers of Australian coal are imposing similar emission measures.

CORPORATES
TSINGHUA UNIVERSITY, CARBON MARKET INSTITUTE LIMITED, WESFARMERS LIMITED – ASX WES, QANTAS AIRWAYS LIMITED – ASX QAN, ORICA LIMITED – ASX ORI, ORIGIN ENERGY LIMITED – ASX ORG, UNITED NATIONS, GREENPEACE, CHINA. NATIONAL DEVELOPMENT AND REFORM COMMISSION, INSTITUTE FOR ENERGY ECONOMICS AND FINANCIAL ANALYSIS, COMMUNIST PARTY (CHINA), CLIMATE BRIDGE

Coal sector failing to overturn China’s import testing

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Original article by Amanda Saunders
The Australian Financial Review – Page: 20 : 9-May-16

Greg Evans of the Minerals Council of Australia says China should either abandon its policy of testing the quality of imported coal or allow shipments to be tested before they depart for China. He adds that the quality control tests contributed to a decline in Australia’s coal exports to China to just 71.2 million tonnes in 2015, compared with 93.4 million tonnes in 2014. The Australian Government has also lobbied China to drop the policy, which was introduced in early 2015.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE

China deal driving jobs and growth: Ciobo

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Original article by Rowan Callick
The Australian – Page: 2 : 2-May-16

Australia’s Trade and Investment Minister, Steve Ciobo, says local businesses of all sizes have benefited from the free trade agreement with China, which took effect in late December 2015. He notes that the downturn in commodity prices reduced the total value of exports to China in the March 2016 quarter, although this was offset by a rise in non-resources exports. Products that recorded strong growth in export volumes during the quarter include bottled wine, fresh fruit and seafood.

CORPORATES
AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIAN LABOR PARTY

Rinehart’s Hancock Prospecting bullish on iron ore prices

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Original article by Perry Williams
The Australian Financial Review – Page: 13 & 20 : 4-Apr-16

Hancock Prospecting is upbeat about the outlook for the iron ore price in the near-term. Executive director Tad Watroba is optimistic that it will remain within the range of $U55 to $U60 per tonne for the remainder of 2016. He notes that about 25 million tonnes of the Roy Hill iron ore project’s output of 55 million tonnes will be shipped to Chinese buyers. The project’s first shipment to China will shortly arrive at the port of Caofeidian.

CORPORATES
HANCOCK PROSPECTING PTY LTD, ROY HILL HOLDINGS PTY LTD, BOAO FORUM FOR ASIA, RIO TINTO LIMITED – ASX RIO, HOPE DOWNS IRON ORE PTY LTD, POSCO, MARUBENI CORPORATION, CHINA STEEL CORPORATION, CREDIT SUISSE (AUSTRALIA) LIMITED, METAL BULLETIN LIMITED, CHINA IRON AND STEEL INDUSTRY ASSOCIATION

Roy Hill iron bound for China

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Original article by Glenda Korporaal
The Australian – Page: 20 : 31-Mar-16

Chinese steelmaker Shougang International will shortly receive its inaugural shipment of iron ore from the Roy Hill project in Western Australia. The first shipment to China is scheduled to arrive at the port of Caofeidian in early April 2016. The Gina Rinehart-backed Roy Hill commenced exports in late 2015, and it is eventually slated to produce 55 million tonnes per annum.

CORPORATES
ROY HILL HOLDINGS PTY LTD, SHOUGANG GROUP, POSCO, ASIAN INFRASTRUCTURE INVESTMENT BANK, HANCOCK PROSPECTING PTY LTD, MARUBENI CORPORATION, CHINA STEEL CORPORATION