Target $18.72, page-6106

ChinaBriefing.com G. Interese 19.5.23 said (re the probable lifting of China's bans on other, non-coal imports)

"The move, if turns out to be true, will be a significant development in Sino-Australian relations, as the de facto ban on coal and other product importation from Australia has a negative impact on relevant businesses in both countries.

The significance of Australian coal to China

High-quality Australian coal is highly desired by China’s steelmakers and power plants, and as perBloomberg’sinformers, imports of Australian coal may reach 1 million tons in the first half of March itself. China, which is the largest producer and consumer of coal worldwide, imported more than 290 million tons of the fuel last year.

After theBloombergreport, Australian coal mining stocks, includingYancoal and New Hope, reduced their losses.

China was a significant consumer of Australian coal until a non-official ban was imposed due to heightened political tensions between the two countries. Australian officials have stated that lifting the ban would be a crucial move in the process of rebuilding relations between the two nations.

As of March 13, 2023, a total of 1.35 million tons of coal had been shipped from Australia to China, which marks a significant increase from 0.82 million tons the previous month. It is further projected that coal imports will hit 2.6 million tons by the end of March, which will clearly cement the recovery of coal imports in the country.

Although the resumption of imports may indicate a thaw in relations between the two countries, the volume of coal imported is significantly lower than before the downturn in diplomatic ties in mid-2020. Indeed, in February of that year, China had imported 3.4 million tons of thermal coal and 3.9 million tons of coking coal from Australia.

Boosting business confidence

Coalis said to bethe first of several Australian products, including lobster, wine, logs, cotton, and barley, which could potentially be permitted to enter China again, even though an official announcement is still pending.

The relations between the two major powers have been strained for many years and this tension boiled over into a full-blown trade embargo on several products, most significantly coal. The country’s manufacturing industries have long relied on Australian coal in their production process, which is considered affordable and reliable. China is the leading consumer and producer of coal and as of last year, it imported more than 290 million tons.

Based on the numbers, the ban has created a supply gap in the manufacturing and energy industry in China, which recently experienced an energy crisis. This has forced Beijing to look elsewhere to countries like Mongolia, Russia, and Indonesia, among others, to source coal supplies".

https://www.china-briefing.com/news/china-to-lift-restrictions-on-australian-coal-imports/