Beijing has scrapped its ban on Australian coal, with a growing armada of bulk carriers leaving terminals Down Under bound for the People’s Republic.
The ban, in place since late 2020 over arguments about the origins of covid, was partially lifted in January when the Chinese government allowed four large importers to restart buying Australian coal. Bloomberg reports today that the ban has now been lifted for all Chinese companies.
Data from commodities platform Oceanbolt shows that in the year to date more than 3.2m tons of coal has already been exported from Australia to China, the majority on capesizes.
“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,” Lorentzen & Co stated in a recent report.
