China decided to partially lift its unofficial ban of Australian coal which has been in place since 2020.
The partial easing of the ban will see three utilities and a major steelmaker given permission to resume imports from Australia, which used to be the second-biggest supplier to China prior to the curbs being imposed in mid-2020, according to Reuters.
However, the likelihood of a return to prior levels of trade is limited as regional and global market dynamics have shifted substantially.
The impact is likely to be more about improving ties between China and Australia, which became strained when Canberra called for an investigation into the origins of the coronavirus pandemic, resulting in China banning imports of several goods from Australia, including barley, wine and lobsters.
Before the ban in July 2020, China was importing in the region of 3.5 to 4.3 million tonnes of thermal coal from Australia, with the 2020 peak coming in at 4.26 million in April of that year, according to data compiled by commodity analysts Kpler.