China Expands Its Coal Exports and Shrinks Imports Due to Glut

m{]7z[c{f6(gsrooif7rt93}_media_dl_1.png China's Customs Office

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(Bloomberg) — China’s coal glut is resulting in an increasing number of unwanted cargoes being offered abroad.

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About 2.5 million tons were exported in the first five months of 2025, according to the latest customs data, which is 13% more than the same period last year. Japan, Indonesia and South Korea were the top destinations, although some cargoes were sent as far afield as the Netherlands. 

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While the quantities are tiny compared to the country’s near-5 billion tons of output, what’s striking is that overseas sales are rising — and imports are shrinking — at a time when China’s usually busy replenishing supplies to meet the surge in power needs that accompany the sweltering summer months. 

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China’s imports peaked in 2024 at well over 500 million tons, but its effort to buttress domestic supply with foreign coal has succeeded in delivering a lot more fuel than its market can readily digest. Local prices have collapsed to a four-year low, and imports are running about 8% below last year’s pace. A surplus has formed due to a slowing economy and rising consumption of clean energy, as well as weak demand for coking coal from the steel industry.

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Of China’s major trading partners, only Australia — home to some of the highest-quality coal — saw an increase in exports in May. It’s biggest provider, Indonesia, registered a 26% decline in shipments during the month, as Chinese buyers ditched some of their lowest-grade supplies.

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The spike in air conditioning demand should give the Chinese market some respite from declines for a few months at least. Smaller miners are also likely to curtail production if prices drop below cost, while safety and environmental inspections in some mining hubs are another stabilizing factor.  

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On the Wire

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Starbucks Corp. said it’s not currently considering a full sale of its China business, disputing a report from Caixin Global that had sent the shares higher in late trading, as the coffee giant battles cheaper local rivals in its second-biggest market. 

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China aims to boost gold production by over 5% in two years. More retailers of jewelry and accessories are turning to platinum products after the rise in gold prices.

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Cobalt prices and shares surged in China after the Democratic Republic of Congo extended its export ban to September, constricting supplies of the raw material used in alloys and batteries.

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Three Chinese state-owned firms are among the bidders for Suez SA’s water infrastructure assets in the country.

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This Week’s Diary

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(All times Beijing)

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Tuesday, June 24:

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Wednesday, June 25:

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Thursday, June 26:

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Friday, June 27:

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—With assistance from Dan Murtaugh.

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