China has finally fully lifted the unofficial ban on Australian coal, which has been in place since late 2020, and which led to switch of Australian exporters more to the Indian market, while China has enlarged imports of cheaper ex-Russia and ex-Mongolia coking coal. Though previously the role of Australian in the Chinese market has been significant, the recent changes will unlikely to result in hike in sales of ex-Australian coking coal to the country due to too high prices for Chinese importers.
According to Bloomberg, in January Chinese authorities made the first step and allowed Australian coal imports for four major importers, including one steel mill.
By now, all market sources in the major coal import regions like Guangdong, Fujian and Guangxi are allowed to clear all Australian coal cargoes in the customs.
Before the ban, Australia was shipping around 30 million mt of coking coal to China, being the major seller with the 40 percent of the market share. The total coking coal imports to China was 62 million mt with Russia and Mongolia covering over 80 percent of the market.
Even though Australia has higher grade coking coal, prices are too high for customers. According to market sources, premium low-volatile coking coal from the US could be found at $340/mt CFR China, while the last deal prices for premium mid-volatile coking coal were at $340/mt FOB and $350/mt FOB. The latest Russian PCI sales to China have been reported at $212-214/mt CFR, as SteelOrbis reported earlier.