China's coal imports surged to a record monthly high in September, fueled by declining international coal prices, according to customs data released on Monday.

The General Administration of Customs reported that coal shipments reached 47.59 million metric tons, a 13% increase compared to the same period last year.

This rise in imports was driven by a sharp drop in Newcastle coal prices (CO-FOBNWC-AU), a key benchmark for the Asian market. Prices fell steadily throughout most of September, hitting a low of $136.46 per metric ton on September 23, marking a 7% decrease from August’s peak of $147.13 per ton. The drop in prices made imported coal more competitive compared to domestic sources.

Additionally, China's thermal power generation experienced a rebound in August, as heatwaves boosted electricity demand, and hydropower production decreased. Analysts also point to growing demand from the chemicals industry as a factor supporting increased coal usage.

From January to September 2024, China imported 3.89 billion tons of coal, an 11.9% increase compared to the same period last year. Photo by en:user:Tobixen, Wikimedia commons.