China is expected to target liquefied natural gas (LNG) as the next commodity that it won’t buy from Australia.
This is despite signs that the costs of Beijing’s ban on importing Australian coal are mounting.
A political dispute between the two countries has already led to various unofficial bans and tariff actions against Australian commodities and products, including barley, copper ores, wine, lobsters and some meat products.
The biggest commodity affected has been coal, with Australian cargoes effectively locked out of what was one of their biggest markets for almost a year.
Australia is the world’s largest exporter of coking coal used to make steel, whilst China is the world’s biggest coal importer, miner and consumer.
So far, Beijing hasn’t taken action against LNG and iron ore but reports suggest that China may be taking some early action against LNG imports from Australia. According to reports, smaller LNG buyers in China have been told to avoid taking Australian cargoes.
China has turned to other countries for importing coal, but has been met with limited success and higher costs.
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