China’s state planner has quietly allowed the resumption of coal imports from Australia for the first time since a trade ban was imposed in 2020.

Three central government-backed China utilities and a top steelmaker have been given permission to purchase Australian coal only for their own use, it has been reported.

It’s the first such move since Beijing imposed an unofficial ban on coal trade with Canberra two years ago.

The partial easing of China’s biggest sanction against Australia comes after the two countries’ foreign ministers met last month to reset frosty diplomatic relations.

In a thawing of the relationship, Foreign Minister Penny Wong met her Chinese counterpart Wang Yi during a visit to Beijing days before Christmas.

The talks were the first following a four-year diplomatic deep freeze between the two countries.

The pair discussed trade sanctions imposed on Australia by China, as well as the fate of two Australians detained in the country.

China companies seek coal

It’s been reported that China’s National Development and Reform Commission summoned three utilities and a steelmaker to discuss the resumption of coal imports from Australia.

These were China Datang Corp, China Huaneng Group, China Energy Investment Corporation and China Baowu Steel Group.

The NDRC did not respond to a request for comment.

The four companies named did not immediately respond to a request for comment outside office hours.

“Some [Chinese] traders have started to ask for prices of the February cargoes after the NDRC meeting,” a source told Reuters, adding that the current Australian coal prices are still attractive to Chinese buyers.

China imposed restrictions on Australian commodities, including coal and wine, just over two years ago after relations between Beijing and Canberra turned sour over political and public health matters.

Australian thermal coal with heating value of 5500 kilocalories was traded at about $US135 ($200) a tonne on a free-on-board basis as of January 3, and is assessed to be traded at around 1150 yuan ($246) a tonne when reaching China.

That would be slightly cheaper than China’s domestic coal prices of about 1200 yuan ($257), traders said.

China’s most-active coking coal futures delivery closed down 2.32 per cent earlier on Wednesday in anticipation of increasing supply from Australia.

Baoshan Iron & Steel, a listed subsidiary of Baowu Group, told a Shanghai Stock Exchange investor platform in December that “importing Australian coal will have a positive effect on the company’s coal procurement and structure adjustment, and will lower the logistic costs at our Zhanjiang base”.