China will reportedly ease its unofficial ban on Australian coal imports that was triggered by Canberra’s investigation into the origin of covid.
The country has been filling the gap for metallurgical coal with higher imports from Russia, Canada and USA.
DBX Commodities believes the overturning of the ban will lead to Australian metallurgical coal finding its way back into China at similar volumes to previous years.
For thermal coal, the picture is looking different.
Lifting the ban should have a muted impact as Indonesian and Russian prices are cheaper than Australian on a China delivered basis.