India cancels CCP war on Australian Coal with 2 million tonne orders: INDO-AUS Mateship on high.
News published by NRI Herald Australia, 5th October 2021
India is coming to the rescue of its long time "Mate" Australia after the Chinese ban on Australian coal that’s been stranded inside China for months, spotlighting how geopolitics is complicating Beijing’s battle against an energy supply crisis. China’s ill-thought move left as many as 70 ships and 1,400 seafarers stranded at Chinese ports desperately waiting to discharge their loadings.
The fuel is being bought at a $12 to $15 a ton discount to fresh shipments from Australia and is some of the cheapest thermal coal relative to its quality on the market, said the people, who asked not to be identified because they aren’t authorized to speak with the press. Indian cement makers and sponge iron plants are among buyers that are using the supplies to bridge domestic shortfalls.
The development reflects the extent to which China-Australia relations have soured: China is battling a crippling energy crunch that’s set to get worse as winter sets in, and yet it won’t touch coal from Australia due to a geopolitical squabble. Indian firms have bought nearly 2 million tons of Australian thermal coal that has been sitting in warehouses at the Chinese ports, the people said.
The discord between China, the world’s largest consumer and importer of coal, and Australia had stranded as many as 70 ships and 1,400 seafarers waiting to discharge their cargoes outside Chinese ports in January. Most vessels subsequently discharged their cargoes or diverted to other destinations.
Effectively India has shown to it's Australian counterparts that India is one of the most trustworthy partner in the upcoming new world order.