Australian traders are also describing a highly cautious market in China. One Australian trader said the main development of the week was the unofficial confirmation that Australia has likely exhausted its 205,000-ton quota for the 2026 calendar year.
Australia thus becomes the first supplier to fill its allocation, while Brazil is expected to exhaust its 1.1 million-ton quota within the coming weeks.
“In two days Australia will start paying the 55% tariff. At least that removes one source of uncertainty from the market. Now we know where we stand,” the trader said.
The exhaustion of Australia’s quota removes one of the major unknowns hanging over the market. However, so far it has not been enough to revive demand or improve sentiment among Chinese importers.
