February 2024
It has been a year since China officially lifted the unofficial ban on Australian coal. The Chinese government initially imposed the ban in early October 2020. Customs clearance for Australian coal was only resumed at the beginning of 2023.
This two-year ban resulted in a dynamic shift in the trade flow of the international metallurgical coal market. China redirected its focus to meet its metallurgical demand by turning to Mongolia, Russia, and the US. Meanwhile, Australia sought alternative short-term customers in other parts of Asia, experiencing modest success in this endeavour. Initially, AME expected a significant readjustment of trade flows with the lift of the unofficial ban at the start of 2023, expecting a substantial increase in Australian import volumes by China. However, this has not been the case, as both China and Australia have adapted well and settled with new trade partners.   Before the Ban Prior to the unofficial ban, China was one of the largest importers of Australian coking coal, amounting to 30.9Mt and 35.4Mt in 2019 and 2020, respectively. However, China’s imports of coking coal from Australia fell to 6.2Mt in 2021 and no metallurgical coal import were recorded in 2022.