April 23, 2025 - China imported 27.4 million mt of metallurgical coal in the first quarter of 2025, a 2% increase year over year from 26.9 million mt in Q1 2024, according to the latest data from the China General Administration of Customs. The modest rise in total imports was supported by strong growth from Canada and the US, offsetting sharp declines from Mongolia.

Canada emerged as a standout supplier, with Q1 exports to China soaring 62% year over year to 2.9 million mt, making it the third-largest supplier after Mongolia and Russia. In March alone, Canadian coal imports increased 90% year over year, though they declined 29% from February.

As US coal can no longer reach China following the imposition of reciprocal import duties in February, and Australian coal prices became prohibitive for most Chinese buyers, particularly in March, Canadian coal, often transported in Capesize ships, continued to be offered to the Chinese market at comparatively competitive prices, according to some Chinese trader sources.

US coal also marked a 44% year-over-year increase to 2.8 million mt over January-March. However, in March alone, volumes shrank to only 207,703 mt due to the substantial import duties imposed.

Russia remained a key supplier, shipping approximately 8.1 million mt in Q1 2025, up 21% year over year. In March, imports totaled 2.8 million mt, an 8% increase from February. However, as prices in the Chinese market continued to soften in April, some Russian miners were reported to have reduced production and supply to China due to losses.

The data does not break out metallurgical coals by type -- whether prime hard or lower-ranked coals -- and includes pulverized coal injection. Most of the imports from Russia are understood to be semi-hard and semi-soft coking coals and PCI.

Meanwhile, Australian volumes also posted double-digit growth, rising 15% year over year to 1.9 million mt in Q1, while March inflows dropped 70% from February to 163,263 mt.

Some Chinese end users who previously relied on US coal were forced to diversify their supply sources after the imposition of tariffs on US coal, with Australian coal being one option. However, as Australian FOB prices continued to rise and decouple from the Chinese market, fewer offers of Australian coal were made to China, according to end-user sources based in South China.

Platts, part of S&P Global Commodity Insights, assessed Premium Low Vol Hard Coking Coal at $171.5/mt CFR China on April 21, down from $177/mt at the beginning of March. In comparison, Premium Low Vol Hard Coking Coal was assessed at $187.6/mt FOB Australia on April 21, up from $185.5/mt at the beginning of March.

By contrast, Mongolian coal inflows -- the largest by volume -- fell 20% year over year to 10.9 million mt in Q1 due to uncompetitive prices against Chinese domestic coal. Nevertheless, with Mongolian coal prices dropping in March, March deliveries from Mongolia increased 40% from February, totaling 4.4 million mt.

China Metallurgical Coal Imports (Unit: mt)

Source: General Administration of Customs