Australia Refuses to Help China Prevent Coal Crisis

China needs more coal to avert a power crisis but it's not likely to turn to Australia for supply. China is facing its worst power crisis in years due to a coal shortage. While australia has the coal Beijing needs the world's second largest economy is unlikely to reverse an unofficial ban on Australian coal imports anytime soon analysts told CNBC.

That's despite recent media reports suggesting that china is releasing small quantities of australian coal that was stuck at chinese ports for months due to the ban. 

Reports that small quantities of Australian coal were allowed to clear customs in china have increased speculation that chinese authorities will look to relax the import ban on australian coal the vector, mining and energy commodities analyst at the commonwealth bank of australia told CNBC. "We don't think chinese authorities will relax china's ban on australian coal this winter," he said.

Late last year China stopped buying Australian coal. that happened as trade tensions between the two countries soared after canberra backed a call for an international inquiry into beijing's handling of the covet 19 outbreak.

Before that Australia was a major coal supplier to China in 2019. Some 38% of chinese thermal coal imports came from australia. energy crunch in china. china relies heavily on coal for power generation.

Since mid-august at least 20 provinces across the country have reported power cuts of varying extent. That was due to several factors including a shortage of coal supplies tougher government mandates to cut emissions and higher manufacturing demand as the global economy bounces back from pandemic lows.

Officials have reportedly urged top state owned energy companies to secure supplies for the upcoming winter at all costs. There are no signs that china will allow companies to purchase new shipments of australian coal, according to Rory Simmington principal analyst at Wood Mckenzie.