China’s coal imports dropped a sharp 23% in July compared to the previous month, signaling a shift in the world’s largest energy consumer’s strategy to prioritize domestic production amid slowing industrial demand and rising stockpiles.
According to customs data released this week, China imported approximately 36.3 million metric tons of coal in July, down from 47.6 million tons in June. The decline comes as domestic coal mines ramp up output, giving Chinese energy suppliers a cheaper and more controlled alternative to foreign sources.
China has been heavily investing in self-reliance for energy security, especially as geopolitical tensions and global market volatility continue to pressure global supply chains. In the first seven months of 2025, domestic coal production reached record levels, driven by government incentives, relaxed environmental controls, and strong support for the country’s coal-heavy power infrastructure. 
Several factors have contributed to the drop in coal imports:
- High Inventory Levels: Power plants and industrial users are reportedly sitting on high coal stockpiles after a strong restocking push earlier in the year.
- Sluggish Economic Activity: With industrial output weaker than expected and the real estate sector still in recovery mode, energy demand has softened.
- Preference for Domestic Supply: Domestically produced coal is now more competitively priced and readily available compared to seaborne imports, particularly from Indonesia and Australia.
Analysts expect China to maintain this trend through the remainder of the year, especially with state planning agencies emphasizing supply chain independence in key sectors. However, a prolonged heatwave or an unexpected economic rebound could trigger a rebound in imports later in 2025.
While the drop in imports may ease global coal prices slightly, it underscores China’s growing ability to buffer itself from external energy shocks—at least when it comes to coal.
