China’s March thermal coal imports fall 8% on year amid weak demand

China’s thermal coal imports fell in March as elevated seaborne prices and ample domestic supply dampened buying interest.

Imports of the power-generation fuel totalled 25.92 million tonnes during the month, down 8.2% from a year earlier, data from the General Administration of Customs showed, as cited by Mysteel.

Thermal coal accounted for 66.4% of China’s total coal imports of 39.06 million tonnes in March. Coking coal made up 31.8%, or 12.42 million tonnes, while anthracite accounted for the remaining 1.8%, or 0.7 million tonnes.

The drop in volumes was accompanied by lower import spending. The value of thermal coal imports fell 7.4% on year to $1.6 billion. Based on volume and value, Mysteel Global estimated the average import price at $62.84 per tonne, down 5.6% from a year earlier.

Indonesia remained China’s largest supplier, although shipments declined 13.9% on year to 15.34 million tonnes, according to the customs data.

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The fall in imports reflected a combination of tighter supply and weaker Chinese demand. On the supply side, Indonesia’s planned production quota cuts, prioritisation of domestic supply and weather-related disruptions constrained exports.

At the same time, higher global energy prices linked to tensions in the Middle East pushed up seaborne coal prices and bunker fuel costs, reducing the appeal of imports. Utilities, supported by sufficient domestic supply—particularly under long-term contracts—cut back on seaborne purchases.

Imports from Australia fell 9.9% on year to 3.82 million tonnes, while shipments from Russia slipped 2.6% to 2.6 million tonnes, also reflecting subdued demand.

However, forward buying interest has begun to pick up, with some coastal utilities seeking May- and June-loading cargoes ahead of the summer peak demand season, which could support import volumes in the coming months.

Editing by Reiner Simanjuntak