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Higher Coal Prices May Slow Asian Import Growth
4 Dec
Summary
- China and India saw higher thermal coal imports in November.
- Prices for seaborne thermal coal grades dropped to four-year lows in June.
- China's domestic coal output has been constrained by anti-overcapacity measures.
Thermal coal imports by major Asian consumers China and India experienced a modest increase in November. China, the world's largest coal importer, received 30.96 million metric tons, a rise from October's figures. India, the second-largest buyer, saw its thermal coal imports reach 13.01 million tons.
This uptick followed a significant price drop for seaborne thermal coal grades, which had fallen to four-year lows in June. Despite a subsequent price recovery and a one-year high reached in November, further import growth may be constrained. China's domestic coal output has also been limited due to government efforts to combat industrial overcapacity.
Looking ahead, China's imports in December are projected to be slightly higher than November but still below December of last year. India's imports are forecast to decrease in December, with lower industrial demand and increased renewable energy output potentially reducing the need for coal-fired generation.
