India and Indonesia have emerged as key beneficiaries of a Chinese ban on Australias coal exports which is expected to further shift global trade in the fuel used for power generation and steelmaking this year.

Australia, the worlds biggest coal exporter, will continue to benefit from growing Indian demand for its coal, made cheaper after it was shunned by China, analysts said. Coal traders and buyers expect Indias buying spree of Australian coal to last into next year due to its price and quality.

China has targeted various Australian products with unofficial import restrictions since March 2020 as relations between the two countries soured.

The ban has also benefited coal exporters in Indonesia, Mongolia and Russia as Chinas buyers switched suppliers, according to the latest Chinese customs data. Indonesias coal miners signed a 1.5 billion supply deal with China in November.

Global trade flows will be selfadjusting with Australian coal flowing to Indian and European markets and South African and Colombian sources coming into China, said Winston Han, chief analyst from China Coal Transportation and Distribution Association at a Coaltrans seminar this week.

As the largest consumer of most commodities apart from oil, China has long had a heavy influence on resources trade through its sheer size. But the ban has particularly benefited Indian buyers, while Chinese importers are complaining that they are having to pay more for lower quality coal from other countries….