Metallurgical coal producers in Australia have indicated that they may have to begin cutting production if China continues to limit its imports from the country.
According to media reports, the Australian Department of Industry said that steelmaking coal export revenue may fall by 35pc to A$22mn ($17mn) during H1 2021, compared with the same period this year. In turn, production volumes are forecasted to fall by 5pc in this period due to lower profitability.
Meanwhile, Australian revenue from iron ore exports is expected to rise by 20pc to A$123mn on higher demand from the Chinese steel industry and lower volumes expected from Brazil’s Vale.
($1=A$1.32)