Coal news and updates

Normalising China-Australia trade will take more than a political fix

SYDNEY, May 2 (Reuters) - More than three years since China first blocked a range of Australian imports in a political dispute, restrictions are easing, but reviving trade is proving more challenging than stopping it in the first place.

A leaders meeting late last year set off a thaw in relations that saw China relax restrictions on coal in January. But three months on, in March, coal imports were still a third the 2016-2019 average.

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Bureaucratic inertia meant word took weeks to filter to Chinese customs officials, say traders, who had to visit eight government departments to sort permits. In February, Australia was still not in the import license computer system, say buyers.

The economics have also worsened. Australian miners have found new customers in the interim and no longer offer concessional prices on coking coal. Meanwhile, cheaper imports from Russia and Mongolia have taken market share in China.

"These things take time, there is no magic wand to bring everything back to normal, it will be a slow process over several months," said David Olsson, chair of the Australia China Business Council.