China-Australia relations: ‘surge’ in Australian coal inquiries amid reports Beijing set to end import ban

China’s state planner is reported to have held talks with four state-owned importers over the lifting of a 2020 ban on Australian thermal and coking coal

Tensions are seen to have eased recently, highlighted by a meeting between Australian Prime Minister Anthony Albanese and President Xi Jinping in November

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Chinese President Xi Jinping meet with Australian Prime Minister Anthony Albanese in Bali, Indonesia, in November. Photo: Xinhua

Published: 4:00pm, 6 Jan 2023

Chinese buyers have stepped up inquiries for Australian coal following reports Beijing is set to lift its unofficial import ban, according to traders, analysts and academics, amid a thawing of bilateral relations despite no official announcement.

China’s state planner, the National Development and Reform Commission (NDRC), is reported to have held talks with four state-owned importers on Tuesday over a partial lifting of the verbal ban on Australian thermal and coking coal that has been in place since 2020.

“While there have been no reports of any deals concluded – yet, there has certainly been a surge in Chinese inquiries for Australian-origin coals over the past couple of days,” said Atilla Widnell, the co-founder and managing director at commodity market intelligence platform Navigate Commodities.

China’s relationship with Australia turned sour when the previous Morrison-administration discussed a probe into the origins of the coronavirus with other world leaders, resulting in trade blocks and tariffs on a wide range of goods, including coal, lobsters, wine and barley.

There are talks in the market that higher authorities in China have given in principle approval to accept Australian coal for usage by three power plants and one steel plant,

Deepak Kannan

“There are talks in the market that higher authorities in China have given in principle approval to accept Australian coal for usage by three power plants and one steel plant,” said Deepak Kannan, the head of global coal pricing at S&P Global Commodity Insights.