QLD China trade reaches new heights, but coal exports plateau

Queensland’s trade with China has reached its second highest point since Beijing imposed a series of brutal sanctions.

Queensland’s trade with China has reached its second highest point since Beijing imposed a series of brutal sanctions, even as the recently restarted coal exports plateau.

But industry analysts say there are signs the restrictions on beef – levelled against several abattoirs including in Queensland – could be lifted later this year.

More than $2.15 billion worth of Queensland goods were traded with China in May, the second highest monthly amount since June 2020 when trade restrictions started to bite as relations soured between Canberra and Beijing.

It has only been slightly higher once in that time, reaching $2.29 billion in November last year, according to recently released Australian Bureau of Statistics data.

Coal at the Port of Brisbane. Picture: AAP image/John Gass

But monthly trade has been averaging higher as restrictions, both official and unofficial, have begun to ease as tensions simmer down.

Restrictions were slugged on a range of Australian products including coal, beef, wine, barley, timber and seafood.

The first Australian coal headed to Chinese ports in February this year, and more from April, as the unofficial ban gradual began to be lifted.

Commodity market data agency Argus Media’s Australia country manager Jo Clarke said Australian coal shipments to China had steadily been increasing from 2 million tonnes in February to 5.4 million tonnes in May.

She said shipping data indicated the rate of coal shipments continued to rise in June, though at a slower rate.

“This is largely driven by shipments from NSW, where sales of lower-grade thermal coal have driven exports,” Ms Clarke said.

“Queensland shipments to China have remained around two million tonnes a month since March. Queensland tends to ship more metallurgical coal used in steelmaking than thermal coal.”

According to Argus Media, easing of tensions between Australia and China has created “cautious optimism” in the Australian beef export industry, saying it was “hopeful that sanctions on Australian abattoirs will be removed in the coming year”.

Trade Minister Don Farrell. Picture: NCA NewsWire / Martin Ollman

Trade Minister Don Farrell visited his counterpart Commerce Minister Wang Wentao in Beijing in May, in what was the first in-person meeting of the Australian and Chinese trade ministers since 2019, without any major concessions at the time.

But Mr Farrell has warned Australia resume World Trade Organisation action against China if Beijing does not end its restrictions on Australian products.

Australia had offered in April to suspend its WTO applications against China’s restrictions on wine and barley.