China has completely lifted its Australian coal ban after implementing the embargo in 2020 in response to Australia calling for an independent investigation into Covid-19’s origin, according to media reports.
Sources familiar with the move told Bloomberg that ports and customs offices have been told to allow the cargoes, after authorities let four major importers resume buying the commodity in January.
Imports of high-quality Australian coal, which is sought by China’s steel makers and power plants, could reach 1m tonnes in the first half of March.
China, the world’s largest producer and consumer of the fuel, imported 290m tonnes of coal in 2022, Bloomberg reported.
China Energy Investment Corp placed an order to import Australian coal in late January, marking one of the first deals since Beijing eased an unofficial ban on the commodity in 2020.
On 6 January, the National Development and Reform Commission called upon China Datang Corp, China Huaneng Group, China Energy Investment and China Baowu Steel Group to discuss resuming imports as China’s easing of Covid-19 restrictions boosted coal demand.
Australia was China’s second-largest coal supplier and exported almost a quarter of its coal to the East Asian country in 2019 before the unofficial ban, which was imposed due to diplomatic ties breaking down in 2020.
Australia responded to the Chinese ban by exporting coal to Japan, India and Europe and is expected to keep doing so, although the ban has been totally lifted.
In early January, market experts said a total lifting of the ban should pose limited upside to the dry bulk market because Australia found new buyers, such as Europe, for its coal and China’s import of Australian coal results in just a short-haul trade for shipping.
