Russian coal is not revered everywhere in Asia

Russian coal is not revered everywhere in Asia
Russian coal is not revered everywhere in Asia

Amid a European embargo on buying Russian coal that came into force on August 10, some Asian countries are also looking away from the federation’s solid fuel.

South Korea, Japan and Taiwan are gradually phasing out Russian coal, according to customs data from the three countries. Japan and Taiwan are reducing supplies at the fastest pace. According to analysts, these countries can completely replace Russian supplies with Australian ones, but at a higher price.

In July, Russia managed to find buyers for all the coal that the EU refused due to the imposition of sanctions on the federation, but with “ex…

Since the beginning of the year, South Korea has imported 12.8 million tons of Russian coal, which represents a drop of only 3% over the same period in 2021. However, Japan imported 8.4 million tons, or 25% less than Russian solid fuel for the January-July period. Taiwan has reduced its purchases by 33.3% and reduced the quantities to only 4.4 million tons, Kommersant reports.

Before the outbreak of war in Ukraine, these three countries were among the most promising markets for coal from Russia. The federation’s earlier forecasts suggested supplies to East Asia would reach 123 million tonnes by 2035, up from 84 million tonnes in 2018. The main markets are China, India, Japan, South Korea and Vietnam. Now, however, Japan, South Korea and Taiwan are joining the group of countries that condemn Russia’s actions in Ukraine and support Western sanctions.

Japan said in April that it intended to gradually reduce Russian coal imports to a complete ban. 11% of Japan’s total solid fuel imports last year came from Russia.

South Korea, on the other hand, received three-quarters of its imported coal from the federation for 2021. Now the country plans to increase supplies from Australia by 1.5 times. Russian coal accounted for about 62% of the peninsular nation’s total imports, and Australian coal accounted for 38% in the first quarter of 2022, Korean news agency Yonhap reported.

Taiwan’s state-owned energy company Taipower does not intend to sign new contracts with the federation in the future.

Indian companies are massively buying Russian coal in non-dollar currencies

Indian companies are increasingly using currencies of various Asian countries to pay for Russian coal imports. In this way, fi…

Thus, Russia will have to find new buyers for 63 million tons of its total exports, which equals 172 million tons. The federation will mainly rely on China and India to increase purchases.

Japan and South Korea have historically been the biggest consumers of Russian thermal and coking coal, says Boris Krasnozhenov, an analyst at Alfa Bank.

Recently, Japan announced the construction of 22 new coal-fired power plants. Amid rising natural gas prices and the shutdown of nuclear power plants after the 2011 Fukushima accident, coal is becoming an efficient source of energy for the Japanese economy,” he adds.

In 2021, Russia is the second largest supplier of thermal coal to Japan and the third largest supplier of coking coal. Japan can replace Russian coal with Australian coal, but at a higher price, Krasnozhenov believes.

South Korea reports growth in electricity consumption, analyst says. Over the summer, the peninsular country looked back to coal as an energy source due to rising liquefied natural gas prices.

Global coal consumption is on track to return to record levels since 2013.

Since the beginning of the war in Ukraine, many countries have faced an emerging energy crisis characterized by reduced energy…

“Korean metallurgical companies actively use Russian coking coal, and the transition to supplies from other regions can be problematic,” says Krasnozhenov.

South Korea has not yet officially announced its withdrawal from Russian coal.

The article is in bulgaria

Tags: Russian coal revered Asia

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