Key facts
- China imported 43.37 million tons of coal in September, a 6% decrease year-on-year.
- September's import volume was 3% higher than August but 5.7% below the previous year.
- Average import prices for Chinese coal reached their highest level since 2024 in September.
- Benchmark thermal coal prices in China hit a three-year high due to lower domestic output and reduced Indonesian supply.
- Coal prices have risen 24% since mid-July amid tight supply and high demand.
- Chinese authorities are pushing to boost coal production ahead of winter.
China's coal imports saw a 6% year-on-year decrease in September, reaching 43.37 million tons, according to preliminary data from the General Administration of Customs (GACC). While this volume was up 3% from August, it remained below the previous year's figures. The decline is attributed to robust domestic inventories, restricted supply from key exporter Indonesia, and a significant surge in import prices.
Average import prices for Chinese coal climbed in September to their highest level since 2024, with benchmark thermal coal prices reaching a three-year high. This price increase is driven by lower domestic production and reduced exports from Indonesia. The Indonesian government has implemented production quotas, and El Niño-related weather conditions have disrupted barge movements to export ports.
Chinese coal output has been trending lower this year, partly due to safety checks following a deadly mining disaster in May that led to mine suspensions. Amid these supply constraints, Chinese authorities have urged local miners to maintain stable production rates ahead of the winter season, when coal is crucial for stabilizing power generation.