China Loses Its Appetite for Russian Coal as Import Costs Rise
- Russian sales rose sharply last year to top 100 million tons
- Imports could soften in April as domestic miners cut prices
A coal yard near Moscow.
Photographer: Andrey Rudakov/BloombergThis article is for subscribers only.
China is losing its appetite for Russian coal as import taxes and logistical snarls push Asia’s biggest buyer to cheaper alternatives.
Russian exports plunged 22% in the first quarter after Beijing imposed a tax regime at the start of the year that favors some of Russia’s rivals. The higher costs have been compounded by an increase in tariffs on Russian railways amid limitations on capacity, the China Coal Transportation and Distribution Association said in a note. The Kremlin’s surcharge on exports to help fund its war in Ukraine has also hindered competitiveness.