China's coal imports in August were the highest for eight months and a drop compared to a year earlier

Customs data released on Monday showed that China's coal imports reached their highest level in 8 months in August. This was largely due to a drop in domestic supply. However, imports were still below last year.

According to the General Administration of Customs, the country imported 42.74 millions metric tons of coke last month. This is the highest since December, but it's down about 7% compared to August 2024.

China's imports of coal have fallen year-on-year, as buyers have turned to the abundant and cheap domestic supply. Since July, China has limited production in order to maintain prices. This led to a fall in domestic coal production in August to its lowest level for over a month.

In its half-yearly report, Shenhua Energy - the listed subsidiary of China's largest mining company - forecasts that imports will remain below the levels of last year through the second half.

Customs data revealed that coal imports for the first eight-month period were down by 12% on the previous year, at 299.94 millions tons.

The domestic prices rose in July and August due to the government's move to limit production, and hot weather that stimulated demand for air conditioning. They reached a six-month peak at the end August. However, they began to fall as the weather cooled down.

Imports are usually affected by falling coal prices as the domestic supply is more cost-effective.

(source: Reuters)