China scraps ban on Australian coal

China has ended fully its de facto ban on importing Australian coal, in place since late 2020 over arguments about the origins of Covid-19.

The ban was lifted partially in January 2023 when the Chinese government permitted four major Chinese importers to restart buying Australian coal.

It has now been reported the ban has been lifted for all Chinese companies, with that a growing number of bulk carriers leaving Australian terminals and heading for China.

Lorentzen & Co stated in a recent report that “the resumption of coal trades from Australia to China will most likely alter trade patterns fundamentally in favour of longer freight distances, favouring particularly the capesize asset class”.