Data from shipping platform Sea/ shows a total of six bulk carriers loaded with Australian coal have discharged or are about to discharge in Chinese ports, marking a significant thawing in trading relations between the two giant Asia-Pacific nations.
China slapped a coal ban on Australian miners in 2020 in a row over the origins of covid, a move that forced the likes of BHP to seek alternative export markets in recent years.
Beijing has granted an initial four domestic firms the right to buy Australian coal with Baosteel on the list. The initial six ships – a mix of capes, supramaxes and a panamax, departed Australia in the last 10 days.
“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 new report.
China and Australia’s top trade officials are due to meet next week where more details of the coal trade will likely be revealed.
