China’s imports of coal fell in September by 6% from a year earlier, customs data showed on Wednesday, as Chinese inventories remain robust, supply from key exporter Indonesia remains restricted, and import prices jump.
Last month, China imported 43.37 million tons of all types of coal, up by 3% compared to August but still 5.7% below a year earlier, preliminary data from the General Administration of Customs (GACC) showed.
The average import price for China’s coal jumped in September to its highest since 2024, analysts at Mysteel Global said on Wednesday.
At the end of September, China’s benchmark prices for thermal coal surged to their highest level in three years, amid lower domestic production and reduced imports from top coal exporter Indonesia.
Coal prices in the world’s biggest coal consumer, which still relies on the fuel for nearly 50% of its power generation, have rallied by 24% since the middle of July, amid tighter supply and high demand.
China’s spot thermal coal prices have been rising since late spring, when the deadliest mining disaster in 16 years in May prompted authorities to step up safety checks and order suspension of activities in a number of mines in the key coal-producing region of Shanxi.
Chinese output has been trending lower this year from a year earlier, while Indonesia’s thermal coal exports have been crimped by government production quotas and heightened uncertainties about Indonesia’s policy in the coal mining and exporting sectors. The Indonesian government slashed quotas for coal miners, while the strong El Niño has reduced rainfall and lowered river water levels, disrupting coal barge movements to export ports.
Amid lower domestic output and imports from Indonesia, China’s government last month called on local coal miners to maintain a stable production rate after a jump in spot prices for thermal coal. Chinese authorities are pushing to boost coal production ahead of the winter season, when coal is expected to play a more prominent role in stabilizing power generation.
By Charles Kennedy for Oilprice.com
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