China’s coal production and imports reached record highs in the first quarter of 2025, according to a report released on March 31 by the China Coal Transportation and Marketing Association (CCTD).
Original By NLS
China’s coal production and imports reached record highs in the first quarter of 2025, according to a report released on March 31 by the China Coal Transportation and Marketing Association (CCTD). Despite strong supply, market demand remained weak, leading to rising coal inventories, falling prices, and a sharp decline in industry profitability.
Official data from the National Bureau of Statistics (NBS) shows that China’s coal output from large-scale industrial enterprises hit 770 million tons in January and February, marking a year-on-year increase of 54.72 million tons (7.7%). This growth rate is the third highest for the same period in the past decade, behind only 2021 and 2022. Production continued to rise in March. Daily coal output from key enterprises monitored by CCTD increased by 6.0% from the previous month in early-to-mid March, suggesting a further year-on-year production increase for the month.
Coal imports remained strong, totaling 76.12 million tons in January and February, up 1.6 million tons (2.1%) year-on-year, setting a new record for the period. By country: Indonesian coal imports fell 5.1% year-on-year to 34.63 million tons. Russian coal imports rose 10.1% year-on-year to 12.65 million tons.
Coal consumption patterns in 2025 have shifted from previous years, according to CCTD. Overall demand declined, driven by several factors：A warmer winter reduced heating demand and power sector coal consumption. Renewable energy generation expanded rapidly, further curbing coal-fired power needs. A slowdown in real estate investment weighed on demand from construction-related industries.
Looking at specific sectors:
Power sector: Coal consumption declined as daily coal use at power plants remained low, and post-holiday industrial activity rebounded more slowly than usual.
Energy-intensive industries: Pig iron production fell 0.5% year-on-year in January and February. Cement and flat glass output dropped 5.7% and 6.1%, respectively, dampening coal demand in the steel and construction materials sectors.
Chemical industry: A notable exception, where higher fertilizer and methanol production boosted coal demand.
With record-high production and imports but sluggish demand, coal inventories are rising while prices remain under pressure. Unless demand fundamentals improve, market weakness and declining industry profitability are likely to persist.