China’s official customs data showed the country imported 28.05 million tons of coal in August. That represents a sharp increase of 35.8% from a year earlier. However, it fell from 30.18 million tons in June. Despite the monthly decline, July and August volumes were the two strongest months for China's coal imports in 2021. Analysts attributed the robust imports to short-term factors, including strong power demand, lower hydropower generation, and falling domestic mine production.
China domestic coal output is expected to improve in the coming months, but it remains unclear whether it will be enough to put weight on imports, especially if electricity consumption remains robust through the winter peak period. However, the outlook for China’s coal imports may turn less positive beyond the coming months as Beijing plans to increase the use of cleaner energy for power generation and household heating.
