China has started booking cargoes of Australian barley after Beijing scrapped onerous tariffs on the trade earlier in August.

Traders have booked at least four cargoes of Australian grain for shipping from September to October, according to people with knowledge of the matter. Beijing removed the import tariffs on August 5 citing changes in the Chinese market, signaling improving ties between the trading partners.

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China was Australia’s largest export market for barley before Beijing imposed tariffs of more than 80% in May 2020, with a souring of relations impacting the trade of other commodities including coal and wine. That led to an increase in shipments to other countries such as Saudi Arabia, Japan and Vietnam.

Australian barley arriving in China for animal feed use was quoted at $280 to $300 a ton, compared with domestic corn at nearly $400, according to traders. There is a price advantage to supplies from Australia, they added.

The trade was worth as much as A$1.5 billion ($970 million) to Australia in 2017-18 before the implementation of tariffs eventually cut that market to zero, according to data from the nation’s agriculture department. China shifted to buying more from France, Canada and Argentina after the duties.