Asia’s imports of thermal coal by sea slipped by nearly 8% in July from a year earlier, as a rebound in Japanese and South Korean purchases couldn’t offset declines in top importers China and India, which have boosted domestic supply and stockpiles in recent months.
Asian seaborne coal imports fell by 7.8% in July compared to July 2024, data compiled by commodity analysts Kpler and cited by Reuters columnist Clyde Russell showed on Tuesday.
Coal shipments into Asia declined by 8.4% in the January-July period compared to the first seven months of last year, according to the data.
Yet, imports rose in July from the previous month, which had seen multi-year low coal cargo arrivals in many Asian importers, most notably Japan, where imports hit the lowest level in Kpler data going back to January 2017.
While coal imports recovered in July from the lows in the prior month, the levels this year have been lower than in 2024, as China and India – the two biggest coal consumers and importers in the world – have slowed down imports as they have been boosting domestic production.
Surging domestic coal production and weaker demand resulted in China’s lowest volumes of coal imports in June for nearly two and a half years. China imported in June a total of 33.04 million metric tons of coal, down by 26% from a year earlier and down by 8% compared to May, according to data from the General Administration of Customs.
Chinese coal purchases for the full year 2025 are set to be between 50 million tons and 100 million tons lower compared to 2024, the local industry association, China Coal Transportation and Distribution Association, reckons.
Lower demand amid the property crisis and weaker industrial growth so far this year, and rising domestic production are weighing on coal imports in China.
In India, the push to boost domestic coal production and reduce reliance on imported coal has been the key driver of the import decline in recent months.
By Tsvetana Paraskova for Oilprice.com
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