China’s coal imports have plummeted to their lowest levels in over two years, according to recent customs data. The decline is attributed to weakened demand and a surge in domestic coal production. Import volumes for June hit their lowest point since February 2023, with first-half deliveries down 11 per cent compared to the previous year. This shift reflects changing dynamics in the world’s largest coal consumer and producer.
In recent months, China has increased its focus on domestic coal production, aiming to bolster energy security and avoid market saturation. This strategy includes exporting surplus coal internationally. Domestic miners are projected to increase output by 5 per cent this year, marking the seventh consecutive year of record production. This growth is expected to outpace consumption, keeping local coal prices in check.
Adding to the import woes, Chinese customs offices are reportedly intensifying scrutiny of low-quality coal shipments. Recent reports in Chinese media indicate that customs officials have blocked certain cargoes from major exporters such as Mongolia and Russia. These shipments were rejected after excessive fluorine levels were detected, highlighting China’s commitment to maintaining quality standards in its coal supply chain.
