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China's coal imports in May fell 18% due to cheap domestic coal and renewable energy

China, the largest coal importer in the world, reduced its imports by 18% on an annual basis, according to customs data released Friday. Low-cost domestic coal eroded overseas purchases, while renewables slowed down coal-fired electricity generation.

According to the General Administration of Customs, imports were 36.04 millions metric tons for the month, down from 43.82million tons in May 2024.

This was the third consecutive month that China's imports of coal fell year-over-year. They had increased previously every month from November 2022. January and February were excluded because they are affected by Lunar New Year holidays.

The data shows that coal imports for the first five month of this year were 188.7 metric tons. This is down from 204.9 metric tons a year ago.

The domestic coal price has remained flat for the past four years, reducing profits.

According to the Bohai-Rim Bay Thermal Coal Price Index, the average price of medium-grade coal in May was 632 dollars.

The domestic coal production is also on the increase, with a 7% rise to 1,58 billion tons in the first four month of the year.

China's thermal energy generation, which is mainly coal and a little natural gas, dropped 4% between January and April, while the generation of renewables captured the increase of 3% in demand for power during those four months. (Reporting and editing by Himani Sarkar; Colleen howe)

(source: Reuters)