2m tonnes of Aussie coal sent to China, full resumption ‘next month’

There are signs of growing confidence that China’s unofficial ban on Australian coal is coming to an end, with millions of tonnes on the move.

About two million tonnes of coal left Australian shores for China last month in signs of growing confidence Beijing’s unofficial ban on the resource is coming to an end, according to market experts.

It comes as trade data shows Queensland’s trade with China rise by $3 billion in the past year, compared to the previous 12 months.

Commodity market data agency Argus Media said shipping data showed more than 2 million tonnes of coal left Australia for China in February, and of that about 700,000 tonnes of that came out of Queensland.

Coal at the Port of Brisbane

Chinese Communist Party state-owned news the Global Times has indicated “the full resumption of Australian coal” trade could start from as early as next month.

Before Beijing implemented an unofficial ban on Australian coal in November 2020, among a range of other trade restrictions and sanctions on the back of rising diplomatic tension at the time, Queensland’s coal trade to China was worth $10 billion a year.

Argus Media spokeswoman Jo Clarke said the 2 million was a significant increase compared to the 140,000 tonnes which left Australian shores in January.

While the first shipment of Australian thermal coal was unloaded in China’s Guangdong port on February 5, Ms Clarke said coking coal had now also been successfully unloaded at China’s Zhanjiang port on February 10.

“No coking coal cargoes have been turned back on account of customs clearance processes in China,” she said.

“But the availability of domestic coking coal at a significant discount to Australian cargoes means that Chinese buyers are not looking to buy Australian cargoes at the moment.”

Coal from Queensland’s Moranbah North mine, previously expected to arrive in February, has been delayed until March due to logistic issues, Ms Clarke said.

Last week the Global Times claimed Chinese companies were “regaining confidence towards Australians goods” in light of improved diplomatic relations.

“There is a speculation that the full resumption of Australian coal may take place in April,” it reported.

Trade Minister Don Farrell

Meanwhile, Australian Bureau of Statistics Trade data showed there was $16 billion in trade between Queensland and China in the 12 months ending January 31, up $3 billion on the previous 12 months.

Trade Minister Don Farrell has been in India as part of the Prime Minister’s trade trip, but is understood to be seeking to follow up his recent virtual meeting with his Chinese counterpart with an in-person visit.