China and India Ramp Up Thermal Coal Imports as Winter Demand Looms

Imports of thermal coal into China and India went up last month, with the two seeing shipments of a total of 44 million tons.

China imported 30.96 million tons of thermal coal last month, which compared with 29.18 million tons for the previous month, Reuters’ Clyde Russell reported today, citing data from DBX Commodities. On an annual basis, however, China’s coal imports declined by 38.19 million tons for November 2024.

Thermal coal imports into India stood at 13.01 million tons in November, which was up from 12.38 million tons in October. On an annual basis, India’s coal imports increased from 12.24 million tons in November 2024.

The hike in imports followed a coal price drop earlier in the year, reaching the lowest in four years in June. As purchases climbed, however, so did prices, which suggests the coming months may see a reduction in coal buying from the world’s top importers.

In October, China’s demand drove international coal prices much higher, prompting them to rebound by 37% from their July lows as generation from coal-powered plants jumped while domestic production declined as a result of government efforts to curb supply.

China’s coal production dropped by 2.3% in October from a year earlier. Year to date, coal output was still 1.5% above year-ago levels, due to record-breaking production in the first half of 2025.

India’s coal production also declined in October, for the second month in a row, reflecting lower demand from the power generation sector, in turn resulting from lower demand for electricity. The annual decline in October coal output stood at 8.5%, official data showed in late November.

China is expecting record demand for electricity this winter, Reuters’ Russell reported, adding this would prompt more coal-burning for power and heat generation. In India, meanwhile, power output from solar installations is surging, prompting the authorities to ask coal power plant operators to adjust their operations to accommodate the additional supply.

By Irina Slav for Oilprice.com

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