In July, China significantly increased its coal imports from Indonesia, Mongolia, and Australia, driven by higher demand due to hotter weather. Customs data revealed that total coal imports rose to a seven-month high of 46.21 million tons, marking an 18% increase year-on-year. Notably, Indonesia, the largest coal exporter to China, saw its shipments rise by 22% to 19.24 million metric tons.
While imports from other countries surged, Russian coal exports experienced a 3% decline to 8.76 million tons. This drop can be attributed to ongoing sanctions and logistical challenges, despite Russia’s temporary suspension of coal export duties during the May-August period.
Mongolia also benefited from the increased demand, with coal exports to China rising by 23% to 7.31 million tons, supported by government initiatives to enhance cross-border rail connections. Australian coal exports increased by 14% to 7.17 million tons, recovering since China lifted an informal ban in February 2023 amid improving trade relations.
Despite the overall increase in coal imports, China’s demand fell short of expectations due to a surge in renewable energy installations, leading to a decrease in thermal power generation for the third consecutive month in July.