Chinese coal imports reached 46 million tons in September, marking the highest level in nine months and the greatest volume for 2025, according to data released by the General Administration of Customs. This increase is attributed to a combination of declining domestic production and rising coal prices within China.
Despite the surge, September’s imports were lower compared to the same month last year when shipments were significantly boosted by falling international coal prices. The recent uptick in imports follows a period of reduced coal arrivals, particularly in July, when imports fell by 23% year-on-year.
Domestic Production Declines Amid Government Measures
In recent weeks, China’s coal production has dropped due to government initiatives aimed at curbing oversupply and stabilizing coal prices. Earlier this year, Chinese authorities directed coal-fired power plants to enhance their stockpiles using domestic resources. The intention behind this strategy was to stimulate local demand and support prices.
As domestic coal prices have risen in the latter half of the year, the gap between domestic and imported coal prices has widened, making imports more appealing. “The rapid rebound in domestic prices has further widened the price gap between domestic and imported coal, making imported coal more competitive,” noted Feng Dongbin, vice general manager at Fenwei Digital Information Technology.
Power Generation and Seasonal Demand Drive Imports
The demand for coal surged in September, driven by increased electricity consumption during heat waves in August. This spike in demand, coupled with the decrease in domestic production, contributed significantly to the record import figures.
Looking ahead, the market is keenly observing whether this increase in coal imports represents a temporary reaction to the seasonal demand for power generation or if it signals a more sustained recovery. Until July, China had been reducing imports while boosting coal exports due to an oversupplied market. Now, with imports rebounding, the situation may be shifting as authorities intensify their efforts to manage excess capacity in key industries.
The fluctuating dynamics of coal imports reflect broader trends in China’s energy policy and market conditions. As China continues to navigate these challenges, the implications for both domestic and international coal markets will be significant.
