BEIJING, April 14 (Reuters) – China’s coal imports saw a 6% decline in March, as high port inventories and sluggish domestic demand led to a fall in spot prices to their lowest levels in four years.
Imports for March totaled 38.73 million metric tons, down from 41.38 million tons in the same month last year, according to the General Administration of Customs. This marked the first year-on-year drop in coal imports since March 2022, excluding the January-February period, when comparisons are often skewed by the Lunar New Year holiday.
As of April 11, the price for medium-grade coal in China, with a heat value of 5,500 kilocalories per kilogram, was 676 yuan ($92.70) per metric ton. This is the lowest price since March 2021, according to the Bohai-Rim Bay thermal coal price index.
Miners in major coal-exporting countries like Indonesia have not reduced prices in line with the fall in demand from China, despite facing rising operational costs and an increase in royalties. As a result, Chinese power plants are turning more to domestic coal supply.
While coal imports in January and February reached a record high of 76.12 million metric tons, a 2% increase compared to last year, the decline in March was anticipated. The drop is expected to continue in the coming months, driven by narrowing profit margins for imports and large coal stockpiles at ports.
For the first quarter of 2025, total coal imports stood at 114.85 million metric tons, a slight decrease of 0.9% from 115.89 million tons during the same period last year.
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