Excavator loads coal to a train in Pingdingshan, Henan province, China November 4, 2021.
Imports from Mongolia, primarily coking coal used in steel production, fell 3% to 7.014 million tons in April. Coal shipments from Indonesia, China’s largest supplier, saw a significant 20% decrease, reaching 14.286 million tons. This drop followed Chinese buyers’ resistance to Indonesia’s proposal to adopt a government-set benchmark for international sales, aimed at increasing royalties. Imports from Australia also declined by 3%, amounting to 6.97 million tons.
A representative from China’s customs authority noted: “Domestic coal prices, currently at four-year lows, have made imported coal less competitive, impacting import volumes across major suppliers.” Despite the April decline, Russian coal shipments to China may rise in the coming months. Moscow plans to support its coal industry, affected by Western sanctions, through discounted rail transportation rates and assured export commitments. The representative added: “These measures could enhance the competitiveness of Russian coal in the Chinese market.”
The reduction in coal imports reflects China’s focus on optimizing domestic production and pricing, with local coal prices affecting the economic viability of overseas purchases. Mongolia’s improved cross-border infrastructure continues to facilitate its coking coal exports, though April saw a slight dip. Indonesia remains the top supplier despite the sharp decline, while Australia’s steady supply underscores its role as a key trade partner.
This shift in import patterns highlights China’s strategic approach to balancing energy needs with cost efficiency, supporting sustainable industrial operations and regional economic stability.
