Why does China need Australian iron ore?

Australia has long been China’s go-to for iron ore, with Australia’s vast iron ore production and the proximity of the two countries making for a productive relationship. Australia is the largest source of feed for China’s steel mills, with around 60\% of China’s iron ore imports originating from Australian mines.

Does China rely on Australia for iron ore?

The Australian iron ore industry had been built to primarily supply Japanese steel mills, but when China arrived on the scene in the 1980s, it expanded quickly to meet the new, enormous demand. The Chinese economy became highly reliant on the process of turning iron ore into new buildings and infrastructure.

Why does China need Australian coal?

China relies heavily on coal for power generation. That was due to several factors including a shortage of coal supplies, tougher government mandates to cut emissions and higher manufacturing demand as the global economy bounces back from pandemic lows.

Does China rely on Australia for coal?

Australian exports account for 58\% of the global seaborne trade in metallurgical coal, compared with 21\% in thermal coal. In 2019–20, China took a little over a third of Australia’s premium metallurgical coal exports and Australia supplied about 55\% of China’s metallurgical coal imports.

What would happen if China stopped buying Australian iron ore?

“First, it would mean too big a disruption to the Chinese economy.” Iron ore imports from Australia are worth $85 billion annually, and so far, the agricultural imports hit by China’s tariffs and bans are worth just $6 billion, he said. “China would not be able to make up its iron ore needs from other sources.”

How much iron ore does Australia supply to China?

In financial year 2021, the value of iron ore exported from Australia to China amounted to around 126.8 billion Australian dollars. China was by far the leading export destination for Australian iron ore in terms of value in this time.

Do we sell coal to China?

A total 7.84mn short tons (7.1mn metric tonnes) of coal left US ports during the month, US Census data released today show. The last time exports were higher was in June 2019. For the first half of 2021, US coking coal exports to China climbed to 4.87mn st from 531,317st last year.

Where will China get its coal?

China’s coal imports from Russia, Indonesia rise, taking the place held by Australian coal – Global Times. Chinese provincial governments are encouraging more coal imports from Russia, Indonesia and Kazakhstan to resolve domestic market shortages.

How much iron ore does Australia export to China?

What percentage of Australian iron ore goes to China?

China accounted for 82 per cent of Western Australia’s iron ore exports in 2016-17, followed by Japan (9 per cent), Korea (6 per cent) and Taiwan (2 per cent). China rose 5 per cent to 666 million tonnes.

How much does China pay Australia for iron ore?

China’s purchases of iron ore from Australia rose AU$2 billion or 20 per cent over the month, while meat imports rose 28 per cent to A$57 million, despite bans on six Australian abbatoirs.

What is China doing with Australia’s iron ore?

Tokyo | China will boost domestic iron ore production by 30 per cent, significantly ramp up investments in overseas mines and strengthen scrap steel recycling under a plan designed to break Beijing’s dependency on Australia’s most valuable commodity export.

Could China’s Inspection changes block Australia’s most important iron ore export?

China this week announced changes to its inspection processes for iron ore imports. Miners said it was a positive development because it will streamline shipments, even though some analysts suggested it could be used to block Australia’s most important export.

Will China stop importing coal from Australia right now?

“The market rumour that all power plants in China should stop importing thermal coal from Australia right now, it said. Other traders also said it was “well known” that Australian coal was being rejected. Jia Na, a coal analyst at consulting firm Today Think Tank, said coal importers were cautious on Australian imports.

What would happen if China cut off the iron ore price?

To cut it off would send the price above $1000 per tonne and bankrupt Chinese steel mills, derail the Chinese economy, and threaten the very existence of the CCP as it lost access to its stimulus lever, the fulcrum of its political legitimacy. Sure, long term, China will demolish the iron ore price anyway.

Why does China need iron ore and coking coal?

Because the Communist Party of China needs iron ore and coking coal. It needs it like oxygen in its blood. Iron ore is the key input into its gigantic economic Ponzi scheme. Every time the CCP orders the construction of another empty apartment to keep ordinary Chinese employed and politically subdued, it needs another tonne of the stuff.