China Nov coal imports up 19% MOM on supply via term contracts

China imported 54.98 million mt of coal in November, marking an 18.9% increase from the previous month, according to data from China's General Administration of Customs on Dec. 10.

The cumulative imports for January-November were also up by 14.8% to over 490 million mt, the data showed.

On a year-on-year basis, the coal imports rose 26.4%, amid a fall in average landed price. The average landed price of coal and lignite in November was $90.15/mt, down sharply from $104.48/mt the same month a year ago. The average landed price was $88.83/mt last month.

The rise in imports can be linked to the steady flow of shipments resulting from the term contracts by China earlier in the year. This consistent arrival of cargoes through these contracts maintained a stable coal supply in the country, reducing the demand for spot cargoes.

"Coal imports continued to be motivated by a national goal of achieving energy security," ANZ Research said in a report. This is despite inventories at power plants and ports being quite full, ANZ added.

As buyers sought to replenish their inventories in anticipation of a harsh winter, sufficient stock and competitive domestic prices limited spot trading in November. The scheduled inflows of cargoes largely met China's heating demand. Additionally, the stimulus measures introduced by the Chinese government failed to boost industrial activity in the country.

Coal stocks at China's major ports were still high. Stocks at northern ports including Qinhuangdao, Jingtang, and Caofeidian, were at 30.15 million mt on Dec. 3, up from 28.7 million mt in the week-ago period, according to a China-based trader.

The demand for imported cargoes in the spot market is anticipated to stay muted in December, owing to China's ample stock levels and robust domestic production. Market participants suggest that the inventories at power plants and ports may be at their highest in several years. Nevertheless, as winter intensifies towards the year's end, there may be an increase in spot demand and buyers were heard to have negotiated long-term contracts for the upcoming fiscal year.

Platts, part of S&P Global Commodity Insights, assessed the prices of China-delivered 5,500 kcal/kg NAR coal at an average of $100.20/mt in November, down from $115.93/mt in November 2023.