China’s coal imports fell sharply by 23% in June 2025, totaling 35.61 million tons, according to data from the country’s customs agency reported by Reuters. This decline marks a significant drop compared to the same month last year, although it represents an increase from the previous month, when imports reached their lowest level in two years. The reduction in imports is primarily due to a surge in domestic coal production, which has alleviated the need for foreign purchases.
The rise in domestic output comes at a time when China is also tapping into other energy sources, particularly hydro, wind, and solar power. These alternatives have limited the demand for coal-fired generation, contributing to the reduced import figures. Additionally, the increase in local coal supply has enabled exports to rise, with Chinese coal exports climbing by 13% during the first five months of the year.
For the first half of 2025, coal purchases in China dropped by 11% compared to the same period last year, bringing the total to 221.7 million tons. Looking ahead, the China Coal Transportation and Distribution Association has projected that annual imports could decline by between 50 million tons and 100 million tons compared to 2024.
Several factors are influencing this downward trend in imports, including the ongoing crisis in the real estate sector, which has affected industrial growth, alongside the increase in domestic coal production. During the first five months of 2025, domestic coal output reached record highs, with projections estimating a 5% increase for the full year.
Coal Power Capacity Approvals on the Rise
In a notable shift, China has reversed its previous trend of declining new coal power plant approvals. Recent data from Greenpeace indicates that the country approved 11.29 gigawatts of new coal power capacity in the first quarter of 2025. This approval rate already surpasses the 10 gigawatts approved in the first half of 2024, reflecting a renewed focus on expanding coal-fired generation capacity.
Last year, the coal power sector experienced a significant downturn, with a 41.5% year-on-year decrease in approvals, resulting in a total of 62.24 gigawatts. This marked the first annual decline in coal power approvals since 2021. The recent uptick in approvals suggests a potential shift in policy as China navigates its energy landscape, balancing between traditional coal power and renewable energy sources.
As the country moves forward, the interplay between domestic production, import levels, and energy policy will be crucial in shaping China’s coal industry in the coming years. The current trends may signal a complex energy future as the nation grapples with both economic demands and environmental considerations.
