China-Australia coal trade has ‘huge potential’, but is demand still there as Beijing mulls lifting ban?
- Chinese officials are reportedly proposing that senior leaders end an unofficial ban on Australian coal amid concerns that global coal supply may tighten
- Prime Minister Anthony Albanese on Sunday said China’s sanctions on Australian goods, including coal, should be lifted immediately
While “huge potential” still exists in its coal trade with Australia, China’s focus on increased domestic production – plus imports from Russia and an uncompetitive price – could lessen the impact of the world’s biggest buyer potentially lifting its unofficial ban, according to analysts.
China implemented an unofficial block on Australian coal in late 2020 amid escalating tensions between Beijing and Canberra, sending imports from its once major supplier to zero.
[Lifting the ban] is possible, and the rhetoric appears to be favourable
“There is huge potential for coal trade between Australia and China,” said Jo Clark, associate editor at commodity and energy price agency Argus Media.
“[Lifting the ban] is possible, and the rhetoric appears to be favourable, with senior ministers in the new Australian government meeting with their counterparts in Beijing after a couple of years of minimal diplomatic and trade contact.”