Published On : 01-Mar-2021
China has already entered the winter season. Yet, a regular and volumized supply of coal briquettes for domestic use and export does not seem right. According to the specifics, in China, 70% of firsthand power energy supply depends on coal reserves. During such a crisis, the entire burden may fall on Coal Briquettes Import Data Ukraine. Although Ukraine and China don't have an excellent import-export relationship, coal is not one of the products that pass between countries' borders. However, an indirect impact of China's Coal supply crisis is possible. How? Let's connect the dots:
According to the Cybex.in Coal Import Data, the United States carries out coal imports from China each year. If we focus on proportions, China contributes 1% of total US Coal Imports, which amounts to 0.05 million tonnes. On the other hand, Ukraine Coal Import data suggests that it is dependent on the United States for 30% of total coal import. Thus, in 2021, China will find it challenging to export coal to the United States. Even if it does, China will have to compromise its coal reserves, which is quite questionable. Given so, the United States may need to compromise on "how many tonnes of coal" it sends to Ukraine this year.
However, luckily for Ukraine, other coal exporting countries are available other than China and the United States. Cybex.in Ukraine, foreign trade data 2020 revealed that Ukraine imports 60% of total imported coal from Russia. Other than Russia, it has also maintained coal import reserves with countries like Kazakhstan.
Here's a fun fact: Ukraine is the 7th top ranking country acknowledged for the highest proven coal reserves worldwide. However, one of the biggest questions that importers and exporters are eager to receive is: Why is China going through a coal supply crisis?
Well! Without a doubt, since the beginning of COVID-19 widespread all over the world, China has been on the target list of many countries. Former President Donald Trump used harsh words for China much time in 2019-2020 as the country lost a countable percentage of the population to this disease. India also banned 59 Chinese Mobile Applications and further ended its import-export relations with China after the border tension.
One of many reasons for China's coal supply crisis is - hiked prices. After being the third-largest coal importers and producing coal in quantity, half of the total coal production globally, China's suffering is unreasonable. All the power plants in China are at the edge of shutting down due to a lack of power energy. So, what would be the end of it? Will China be able to import more coal than it already does?
Subscribe to Cybex.in and create the right predictions using volumized foreign trade data.
