The West is reducing its energy dependence on Russia, and therefore energy imports. In addition to oil, China is also increasing imports of Russian thermal coal, which rose 51 percent month-on-month in May.
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China is the world’s largest importer of oil and thermal coal used in power plants. India uses similar discounts on the purchase of these raw materials from Russia. According to the local customs administration, China imported 8.42 million tons of oil from Russia last month, which corresponds to a volume of about 1.98 million barrels per day.
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In April, Beijing imported 1.59 million barrels of oil a day from Russia. Chinese companies, including state-owned refining giant Sinopec and state-owned ZhenHua Oil, have increased Russian oil purchases at high discounts.
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Saudi Arabia was the second largest oil supplier to China in May. Its import volume increased by nine percent year on year to 7.82 million tons, ie to 1.84 million barrels per day. That was less than 2.17 million barrels of oil per day in April. Russia returned to first place after a 19-month hiatus.
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Demand for coal
As for thermal coal, China expects strong summer demand and also buys raw materials from Russia at a favorable price. Last month, it imported 3.3 million tons of this raw material. According to traders, the price of Russian coal is now around $ 170 per tonne, which is just under $ 175 to $ 185 for coal originating in Australia.
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However, year-on-year, China imported less thermal coal. Last May, it bought four million tons from Russia. Demand was weaker this year due to its own higher production and lower economic activity due to anti-pandemic closures.
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