China trade tension a risk to economy: BHP mining boss

Original article by Emmaline Stigwood
The Australian – Page: 13 & 16 : 21-May-21

China’s unofficial ban on coal imports from Australia has forced local producers to find alternative markets for metallurgical coal. BHP Minerals Australia president Edgar Basto notes that this has resulted in the price falling by up to 50 per cent; he says this is unsustainable and action to improve Australia’s relations with China will eventually be needed, given that China is a major market for coal used in steel-making. Basto says that both nations must take action to "rebuild trust".

CORPORATES
BHP GROUP LIMITED – ASX BHP

China tensions threaten LNG, coal exports

Original article by Perry Williams
The Weekend Australian – Page: 20 : 15-May-21

China has imposed an informal ban on Australian thermal coal since 2020, and consultancy Wood Mackenzie expects the ban to remain in place until 2022. There are now also suggestions that the ongoing tensions could see China pull back from agreeing to sign long-term LNG deals with Australia, which supplies 45 per cent of China’s LNG requirements. Woodside Petroleum advised in February that it had been forced to delay talks to sell LNG to China, citing the economic rift between the two nations.

CORPORATES
WOOD MACKENZIE, WOODSIDE PETROLEUM LIMITED – ASX WPL

China accuses Australia of playing the victim and politicising trade, says coal ban is responsible act

Original article by
abc.net.au – Page: Online : 16-Dec-20

China’s Ministry of Foreign Affairs has responded to growing criticism of its sanctions against some imports from Australia. Wang Wenbin, a spokesman for the ministry, has used a press conference in Beijing to stress that the recent action taken by the nation’s authorities is in accordance with Chinese laws and regulations, as well as international practice. He has also described it as a "responsible act" for Chinese industries and consumers. Coal appears to be the latest commodity to be hit by Chinese restrictions, which have also affected products such as wine, beef, timber and barley.

CORPORATES
CHINA. MINISTRY OF COMMERCE

China coal ban an FTA breach

Original article by Geoff Chambers
The Australian – Page: 1 & 4 : 16-Dec-20

Prime Minister Scott Morrison says the federal government has received no "official information" from China about restrictions on coal imports from Australia. He says that any such move would be in breach of both the free-trade agreement between the two nations and World Trade Organization rules. China’s state-owned media has reported that Australian thermal coal will be blacklisted in favour of coal from countries such as Indonesia, Russia and Mongolia. Morrison contends that a ban on higher-quality Australian coal would increase China’s carbon emissions. He has also emphasised that Japan and India are bigger markets for Australian thermal and coking coal respectively than China.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Find another market other than China, exporters warned

Original article by Will Glasgow, Nick Evans
The Australian – Page: 6 : 6-Nov-20

Federal Trade Minister Simon Birmingham has asked the Chinese government to clarify whether it does intend to impose new bans on Australian imports, after media reports in China appeared to confirm this. Meanwhile, federal government officials have discussed the potential ban during a telephone briefing with representatives from the agricultural industry, one of the sectors that would be amongst the hardest hit by such a ban. Participants in the briefing say they were advised to find alternative export markets.

CORPORATES
AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE

China spat puts $149bn trade at risk

Original article by Will Glasgow, Ben Packham
The Australian – Page: 1 & 8 : 5-Nov-20

There is growing concern that the Chinese government is set to impose bans on more Australian imports. Wine producers have become the latest casualty of escalating tensions between the two nations, with Chinese customs officials preventing them from exhibiting at the China International Import Expo. The lobster industry has also been targeted, with a shipment worth more than $2m having to be destroyed after it was delayed at a Chinese airport. Unconfirmed media reports in China have suggested that a widespread ban on Australian imports – including coal, copper and sugar – will take effect on 6 November.

CORPORATES

Australian beef exports at risk

Original article by Michael Smith
The Australian Financial Review – Page: 10 : 22-Jun-20

China imposed bans on meat from four of Australia’s largest abattoirs in May, citing health certification and labelling issues. Xiamen Xiangyu Group executive Eric Huang says the commodities trader will have to switch to US beef suppliers if the bans on the four abattoirs are not lifted in the next six months; the state-owned Chinese company purchases 20,000 tonnes of Australian beef a month. The federal government contends that the ban was ‘punishment’ for its push to hold an independent inquiry into the origins of COVID-19.

CORPORATES
XIAMEN XIANGYU GROUP

Australia relaxed over China’s changes to iron ore export rules, but war of words goes on

Original article by Ben Doherty
The Guardian Australia – Page: Online : 22-May-20

BHP and Fortescue Metals Group have welcomed China’s decision to relax its inspection rules for iron ore shipments. From 1 June, customs officials will only inspect batches of iron ore if this is requested by the importer or trader; all shipments were previously subject to mandatory inspection on arrival in China. Minerals Council of Australia CEO Tania Constable says the new customs procedures recognise the high quality of Australian iron ore. However, the Chinese media has warned that growing trade tensions could potentially hit Australia’s iron ore exports. Australia supplies 62 per cent of China’s iron ore.

CORPORATES
BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, MINERALS COUNCIL OF AUSTRALIA

Chinese prefer Indonesian coal

Original article by Glenda Korporaal, Nick Evans
The Australian – Page: 17 & 20 : 15-Apr-19

Michael Cooper of S&P Global Platts says new tenders being issued by China’s state-owned power stations are specifying lower-grade thermal coal of the type that is produced by Indonesia. He adds that traders have indicated that the preference for coal from Indonesia rather than Australia is politically motivated. He also notes that Chinese power stations are also favouring coal sourced from Colombia, despite much longer shipping times. There has been speculation that restrictions on Australian coal imports could be lifted at the end of May, but it has not been confirmed by the Chinese government.

CORPORATES
S&P GLOBAL PLATTS, RBC CAPITAL MARKETS

Pyne blamed for freeze on coal imports

Original article by Glenda Korporaal
The Australian – Page: 19 & 20 : 21-Mar-19

Michael Cooper of S&P Global Platts says Chinese buyers have favoured Indonesian coal over Australian coal since January, despite its lower quality. The firm expects China’s restrictions on Australian thermal coal imports to last until the end of May. Meanwhile, Trade Minister Simon Birmingham has rejected suggestions that China’s import restrictions are politically motivated. Some Chinese coal traders have claimed that Australian coal imports have been targeted due to comments made by Defence Minister Christopher Pyne in January regarding China’s presence in the South China Sea.

CORPORATES
S&P GLOBAL PLATTS, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIA. DEPT OF DEFENCE, HUAWEI TECHNOLOGIES COMPANY LIMITED, AUSTRALIAN LABOR PARTY, CHINA. MINISTRY OF COMMERCE, GLENCORE PLC, NEW HOPE CORPORATION LIMITED – ASX NHC, CHINA. GENERAL ADMINISTRATION OF CUSTOMS