China’s coal imports surged to a record level in September, driven by increasing consumption and declining international coal prices.
According to data from the General Administration of Customs, China imported 47.59 million metric tons of coal last month, marking a 13% increase compared to September 2023.
Analysts noted that coal-fired power generation has seen a recent growth in China, with rising demand from the chemicals sector also contributing to higher consumption. As international coal prices dropped, imported coal became cheaper than domestic supplies, prompting China to bring in a record amount in September.
The benchmark coal prices in Asia, tracked at Newcastle, Australia, fell for much of September. Prices reached their lowest point at $136.46 per metric ton on September 23, a 7% drop from the August peak of $147.13 per ton, based on estimates from Reuters.
August saw China’s first increase in coal-fired power generation in four months, reinforcing coal’s continued importance in the energy mix, despite growing clean energy output and a rising share of renewables.
Thermal power, mostly coal-based, accounted for a 3.7% rise in electricity output in August compared to the same month last year, according to official Chinese statistics referenced by Reuters columnist Clyde Russell.
While China is rapidly expanding its renewable energy capacity and is a global leader in investments and clean energy supply chains, including solar and battery metals, it continues to rely on coal. The country is expanding its coal-fired power plants to meet growing electricity demand and ensure energy security, particularly during peak periods.
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