China Bans North Korean Coal!
In a show of solidarity with the U.S. against North Korea, China has stopped buying coal from the communist regime after last week’s missile test. Now, they’re importing more coal from the United States.
This decision comes after President Trump met with Chinese President Xi Jinping at his Mar-a-Lago resort in Florida last week, where the administration said North Korea’s missile tests would be a top priority in the talks, according to a report in the Washington Examiner.
On Tuesday, it was reported that “China’s customs department ordered all companies that receive imports from North Korea to immediately return all coal cargoes, according to three trading sources who saw the order. The order was sent by the Chinese government on April 7, soon after Trump and Xi concluded their discussions.”
This is great news for U.S. coal producers and follows through on another of the president’s campaign promises to beef up the coal industry.
“Trump said he’d be good for coal, and I don’t think he meant N. Korean coal,” stated Luke Popovich, spokesman for the National Mining Association.
The government’s Energy Information Administration (EIA) predicted on Tuesday that coal consumption in the U.S. is expected to continue growing throughout the summer, which is expected to be a cool one this year.
According to acting EIA Administrator Howard Gruenspecht, “U.S. coal production is expected to rise this year, due in part to expected higher coal-fired electricity generation. And the amount of electricity generated from natural gas this summer is forecast to be lower than last summer, reflecting higher natural gas prices.”
Coal has made a comeback in recent weeks after being displaced by natural gas in the past several years.