The willingness of Chinese buyers to purchase Russian coal is declining as import taxes and logistical problems, including rising costs for Russian rail freight, drive Asia's biggest buyer to cheaper alternatives. Russian coal exports fell 22 percent in the first quarter after Beijing introduced a new tax policy earlier this year that benefited some Russian competitors.
Russia's introduction of additional tariffs on exports to finance the war in Ukraine has also hurt the competitiveness of Russian exporters.
According to the rapporteurs, Russian coal sales to China rose sharply last year, reaching more than 100 million tons, and the country's role as the number two supplier to its strategic partner stabilized, while China's imports increased. China's coal purchases increased by a further 14 percent year-on-year in the first three months, with exporters Australia and Mongolia benefiting the most.
Imports may fall in April as domestic mining companies cut prices in the off-season and China's economy struggles to pick up pace. Increased hydropower activity, especially after torrential rains in the south of the country, is also likely to reduce China's coal demand.
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