Thermal coal imports into Asia reversed a nine-month losing streak last month, rising to the highest in almost a year, Reuters’ Gavin Maguire reported, noting the rise could extend over the coming winter months.
Citing data from commodity analytics provider Kpler, Maguire reported that thermal coal imports in Asia jumped to 85.34 million tons last month, up by 6.4 million tons from July and the first monthly amount exceeding 81 million tons since December 2024.
The increase was driven by coal production curbs in China aiming to ease domestic oversupply, which drove output down 3% in August. A rebound in industrial activity across East Asia also contributed to the uptick in coal imports last month. The biggest coal buyers in Asia in August were China, South Korea, and Japan. Going forward, coal demand strength will be supported by demand for heating unless, of course, the Asia winter turns out milder than usual.
The news comes on the back of reports about a rebound in international coal prices, thanks to stronger demand from China, published earlier this month. The prices of key seaborne thermal coal grades rebounded in September from four-year lows in June and July amid the strengthening of demand and China’s production decline.
After months of falling coal imports earlier this year, with July arrivals down by 23% from a year earlier, China’s coal imports strengthened in August and are set to remain at high levels in September, too. China is on track to import 27.41 million metric tons of seaborne thermal coal this month, per Kpler data.
The latest developments in coal suggest this will not be the first year when global coal demand experiences a comprehensive annual decline, as some observers had hoped. The Reuters report coincides with news out of the IEA, which expects electricity demand in Southeast Asia to boom in the coming years, doubling from current levels to 2050.
By Irina Slav for Oilprice.com
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