What’s new: China’s coal imports from Australia jumped 20.6% year-on-year to more than 207,000 tons in February, official data show, after Beijing lifted an unofficial ban on purchases of the country’s fossil fuel.
Specifically, the Asian nation imported 134,254 tons of thermal coal and 72,982 tons of coking coal from Australia, according to data released by the General Administration of Customs on Monday. February’s imports of the two types of coal are valued at a total of nearly $41.9 million.
The National Development and Reform Commission, China’s top economic planner, told several major utility and steel companies at a Jan. 3 meeting that they would be allowed to import Australian coal, reversing a de facto embargo in place since 2020, three people close to the matter told Caixin.
Companies have been able to apply for government permits to import coal “normally,” Ministry of Commerce spokeswoman Shu Jueting said at a press conference on March 16.
The context: Before 2021, Australia had long been China’s second-largest source of imported coal. But trade began tumbling from October 2020 after Beijing imposed an unofficial ban on the product amid deteriorating diplomatic relations between the two countries.
But relations between Beijing and Canberra have steadily improved following the election of the center-left Labor government in Australia in May, helmed by Prime Minister Anthony Albanese.
China’s coal imports from Australia are expected to rebound this year to 10 million tonnes, one coal analyst told Caixin. Traders have been attracted by the lower prices and higher quality of coal sourced from Australia compared to other destinations, other analysts said.
Contact editor Jonathan Breen (jonathanbreen@caixin.com)
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