Asian energy importers are curbing their appetite for thermal coal as prices rebound after falling to the lowest in four years earlier in 2025.
Reuters’ Clyde Russell reported today that October coal arrivals in China, India, Japan, and South Korea were all going to be lower than the September total because of the price developments. Since June, when thermal coal fell to a four-year low, prices for Australian coal have added 16% while Indonesian coal prices have inched up by 12%.
The price recovery was driven by higher Chinese imports during the summer. After months of declining coal imports earlier this year, with July arrivals down by 23% from a year earlier, China’s coal imports strengthened in August and remained at elevated levels in September, too.
Lower demand amid the property crisis and weaker industrial growth, combined with rising domestic production, to weigh on coal imports in China in the first half of the year. In the second half, industrial growth has picked up, driving demand for energy higher.
China’s coal imports this month are seen at 28.17 million tons by research firm DBX Commodities. That would be down from 28.43 million tons in September and from 33.53 million tons in October 2024.
India is seen importing 13.35 million tons of thermal coal this month, down from 13.76 million tons in September and from 13.82 million tons in October 2024.
Japan is expected to record a more palpable decline in coal imports this month, to 9.52 million tons from 10.44 million tons in September. A year ago, Japan’s total imports for October were 9.94 million tons.
South Korea is also trimming its thermal coal imports considerably, with October arrivals seen at 6.45 million tons, down from 8.19 million tons in September. On an annual basis, however, South Korea’s coal imports will be higher this October, up from 5.92 million tons last year.
By Irina Slav for Oilprice.com
