India is purchasing Australian coal that has long been stranded in China. The situation also brings into light how geopolitics is unnecessarily complicating Beijing’s battle against its energy crisis.
Buyers who have made the purchases have said that the fuel is being bought at about $12 to $15 per ton. It is among the most inexpensive type relative to its quality in the market. Indian sponge iron plants and cement producers are among buyers using the supplies to meet domestic shortfalls.
This recent development shows the extent to which China-Australia relation has soured: China is fighting an energy crunch that is likely to worsen by the time winter approaches, and yet it won’t touch coal from Australia courtesy of its geopolitical squabble.