STMRF - China poised to end ban on Australian ban as supply tightens further

Chinese officials are proposing to end a nearly two-year ban on importing Australian coal on concerns that already-tight supply may tighten further when Western-led sanctions on Russian energy begin, Bloomberg reported on Thursday.

The proposal will be submitted to senior leaders with a recommendation to resume Australian imports, as officials seek to improve fuel supplies to avoid a repeat of last year's power disruptions - particularly ahead of the upcoming Communist Party congress - according to the report.

Potentially relevant tickers include ( NYSE: BHP ), ( NYSE: BTU ), ( OTCPK:SOUHY ), ( OTCPK:NHPEF ), ( OTCPK:YACAF ), ( OTCPK:STMRF )

China was once a major consumer of Australian coal, but the government implemented an unofficial ban in 2020 following a decision to bar Huawei from building a 5G network in Australia and Prime Minister Morrison's calls for an independent probe into the origins of COVID-10.

Decisions by coal consumers including the European Union, Group of Seven nations and Japan to ban Russian imports as soon as this year are adding pressure on global markets just as demand booms with tight supplies across the energy complex.

Prices for Asia's benchmark Newcastle coal surged to record highs above $400/ton last month .

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