Japan officially announces ban on imports of Russian coal

Following the European Union (EU), Japan also officially announced on the 8th of this month that it will ban the import of Russian-made coal, which is bound to set off a war for coal between Japan and Europe, which may increase the cost of steel and electricity in Japan. Sankei Shimbun reported on the 8th that following the European Union’s ban on Russian coal imports, the Japanese government also announced on the 8th of this month that it will reduce Russian coal imports in stages, with the ultimate goal of completely embargoing Russian coal, which will allow coal as a The power industry and manufacturing industry of fuel and raw materials are expanding to seek alternative sources to replace Russian coal, which is bound to set off a battle for coal with Europe, and may also lead to rising electricity and steel costs. According to reports, Japan's total coal imports are about 180 million tons, of which 13% of thermal coal used for power generation is produced in Russia, and 8% of coking coal used as a raw material for steel production is produced in Russia. In order to switch the source of supply to have a higher market share The coal produced in Australia and Indonesia has begun to compete among countries. In 2020, the major Japanese steelmaker JFE Steel relies on Russian imports for 18% of its coking coal, and about 60% of the coal required by the largest cement plant, Pacific Cement, comes from Russia. In order to reduce its dependence on Russia, these companies will consider expanding purchases from Australia and other places in the future. It is just that coal orders from other countries such as Europe have begun to flood into Australia. Even if the necessary quantity can be ensured in the future, the increase in procurement costs may suppress profits.