Chinese Demand for Coal Surges, But Australia Remains Frozen Out
China's output of coal increased to its highest level since at least March 2015 after authorities gave permission for mine expansions to boost supply and ease record prices. Chinese coal imports from Russia surged in September, but one of its traditional suppliers -- Australia -- remains frozen out of the lucrative trade because of diplomatic tensions.
China -- the world's leading consumer of coal -- has an energy shortage triggered by strong demand from its manufacturers, industry and households.
The government in Beijing is determined to avoid more power cuts.
Since July, China has approved expansions at more than 150 coal mines, according to the National Development and Reform Commission. Figures from China's National Bureau of Statistics showed domestic coal production exceeded 357 million tons in October, up from 334 million tons the previous month.
Official customs data has also shown that China imported about 3.7 million tons of thermal coal from Russia -- the main fuel for electricity generation -- in September, up more than a quarter from August.
