China’s Coal Imports Plunge to Two-Year Low
Surging domestic coal production and weaker demand resulted in China’s lowest volumes of coal imports in June for nearly two and a half years.
China imported last month a total of 33.04 million metric tons of coal, down by 26% from a year earlier and down by 8% compared to May, according to data from the General Administration of Customs cited by Reuters.
Chinese imports in June 2025 were at their lowest level since February 2023, the data showed on Monday.
Coal imports dipped by 11% in the first half of the year from the same period of 2024, to 221.7 million tons.
Chinese coal purchases for the full year 2025 are set to be between 50 million tons and 100 million tons lower compared to 2024, the local industry association, China Coal Transportation and Distribution Association, reckons.
The trade body’s vice president Li Xuegang said as much at the Coaltrans China conference in June. If the forecast pans out, China’s coal imports would have dropped this year by 18.4% compared to 2024.
Lower demand amid the property crisis and weaker industrial growth so far this year, and rising domestic production are weighing on coal imports in China.
Domestic coal production surged to a record high in the period January to May, and full-year output is set to rise by an estimated 5%.
Amid oversupply, China has been cutting imports and growing coal exports in recent weeks.
Record-high domestic coal production and weaker coal-fired power generation in China have resulted in declining demand for thermal coal imports into the world’s biggest coal market, with the trend emerging earlier this year, after imports topped 500 million tons in 2024.
In view of the low domestic coal prices, weaker demand, and high coal inventories at ports, China’s import decline has not been a surprise, and analysts indicated earlier this year they would not be surprised if the trend of lower coal imports continues for the next few months.
By Tsvetana Paraskova for Oilprice.com
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