Australia sends biggest copper concentrate shipment to China since informal ban lifted
Australia exported 27,500 metric tons of copper ores and concentrates worth $44.5 million to China in November, marking the largest shipment since China imposed an informal ban last year, according to Australian customs data. This comes amid hopes that China may be removing the ban, which was implemented in response to Australia’s calls for an inquiry into the origin of COVID-19.
Prior to the ban, Australia used to supply China with approximately 80,000 tons of copper concentrate per month, accounting for 5% of China’s total imports. The recent increase in exports is seen as a positive sign of improving trade relations between the two countries.
China has been gradually easing tariffs and unofficial bans on various Australian commodities since the new government came to power in Canberra in 2022. Reuters previously reported that Swiss commodity trader Trafigura had agreed to assist Chinese smelters in clearing imports of copper concentrate from Australia.
Although these developments indicate a more optimistic outlook, state-owned Chinese smelters that process the concentrate into copper metal have thus far shown reluctance to purchase from Australia.
Additional Australian customs records reveal that 10,594 tons of copper concentrate were exported to China in September 2022, followed by 10,934 tons in January 2023. Surprisingly, Chinese customs data does not show any significant imports from Australia since June 2021, when 11,404 tons entered the country, based on information obtained from Trade Data Monitor.
As trade tensions ease and restrictions are gradually lifted, it remains to be seen how this trend will continue in the coming months. The resumption of copper concentrate exports to China signifies a positive step forward for Australia’s mining industry while emphasizing the potential for improved bilateral relations between the two nations.
In conclusion, Australia’s record-breaking copper concentrate shipment signals a potential thaw in the trade relationship between Australia and China. This development comes as China eases unofficial bans and tariffs on Australian commodities, with the hope of future cooperation and economic growth.
