China’s coal and lignite imports in Jul’26 hold steady as supply risks persist

• Domestic supply disruptions support coal imports
• Recovering domestic output may cap further import growth

China’s coal and lignite imports remained broadly stable at 42.73 million tonnes (mnt) in July 2026, indicating sustained procurement despite relatively comfortable domestic inventories. During January-July 2026, cumulative imports increased to 268.1 mnt, registering a 4.3% y-o-y rise, reflecting the country’s continued reliance on imported coal to supplement domestic supply.

Key factors supporting higher imports:

• Domestic supply disruptions: Mine accidents and heavy rainfall in Shanxi province temporarily curtailed coal production, prompting buyers to increase imports to bridge the supply gap.
• Competitive imported coal prices: Attractive seaborne coal prices, particularly from Indonesia and other major suppliers, encouraged utilities and traders to continue overseas procurement.
• Supply security and inventory management: Importers maintained healthy purchasing to diversify supply sources, replenish inventories, and ensure uninterrupted fuel availability amid domestic production uncertainties.

Outlook

China’s coal and lignite imports are expected to remain stable in the coming month, supported by inventory replenishment, and the need to offset temporary domestic supply disruptions. However, a recovery in domestic coal production and comfortable inventories may limit any significant increase in import volumes.