China’s coal imports from all sources declined by 16% year-on-year in April, driven by weaker domestic coal prices, which reduced the profitability of imported coal. According to customs data, domestic prices have hit a four-year low, prompting buyers to scale back on foreign shipments.
Russian coal imports fell 13% year-on-year to 7.397 million metric tons. However, shipments may rebound in the coming months as Moscow plans to support its coal industry, which is struggling under Western sanctions. Measures include discounted rail transportation rates and guaranteed export quotas, according to a Reuters report.
Mongolia, a key supplier of coking coal, saw its exports to China dip by 3% to 7.014 million tons.
Indonesia, China’s largest coal supplier, faced a sharp 20% drop in exports to 14.286 million tons. The decline followed tensions over Jakarta’s insistence on using its government-set benchmark prices in international sales—a move aimed at boosting royalties but rejected by Chinese buyers.
Meanwhile, coal imports from Australia also slipped by 3% to 6.97 million tons, continuing a trend of modest declines in trade volumes from traditional partners.
Despite the downturn, China’s coal imports hit a record high earlier in 2024, driven by stockpiling and strong industrial demand. However, the latest figures suggest a cooling off period amid unfavorable import economics and ample domestic supply.
