Asia thermal coal imports increase in July as Japan and South Korea purchase: Russell
Imports of seaborne coal from Asia increased in July, but this increase was driven by developed economies of North Asia rather than the heavyweights China or India.
According to Kpler, the total seaborne imports for fuel used to generate electricity grew by 12% in July from June's figure of 63.02 millions tons.
The increase in July imports coincides with a weaker trend among Asia's seaborne thermal coking coal shipments as the top buyers, China and India, reduced purchases due to abundant domestic supplies and increasing generation from renewables.
Kpler data shows that Asia's imports in the first seven month of the year are 8.4% less than they were in July 2024.
The increase in imports from developed North Asian economies, such as Japan, South Korea, and Taiwan, was responsible for the volume recovery in July compared to June.
In July, Japan, the third largest coal importer in the world, imported 10.0 million tonnes of thermal coal, up from 6.16 millions in June.
It's important to note that the Kpler data dating back to January 2017 shows that June was Japan's lowest month in terms of seaborne thermal coal exports.
South Korea's fourth largest coal buyer imported 7.49 million tonnes in July. This is up from the 5.49 million tons it imported in June. It was the highest monthly total for South Korea since August of last year.
Taiwan imported 3.91 million tonnes in July, a significant increase from the 3.72 million tons in June. This is the highest since November of last year.
The higher imports of North Asia are likely due to the increased demand for electricity in the northern summer. However, they also show that thermal coal is more cost-competitive than liquefied gas.
Japan, South Korea, and Taiwan are the main buyers of higher-grade thermal coking coal in Australia.
The weekly price assessment of the price reporting agency Argus is on the rise in recent weeks. It ended at $112.06 a tonne in seven days up to August 1.
The price has risen 22.4% from a low of $91.58 per ton, which was reached on April 25. This is due to the increased demand in North Asia.
PRICIER LPG
Even though the price of higher-grade thermal coke has increased, it is still cheaper than spot LNG
According to LSEG, the LNG price has fallen from its recent high of $14 per mmBtu. However, even at this level, it is above $11.20. This is the upper limit of the range where a Japanese utility will find it more cost-effective to burn coal.
The price of lower-energy coal preferred by China, India and other Asian countries has increased much less than the higher-energy Australian thermal coal.
Last week, coal with an energy content (kcal/kg of 5,500) reached $67.49 per ton. This is a slight increase from the four-year-low of $66,00 in the week ending July 11.
Indonesian coal, with a 4,200-kcal/kg energy content, ended the week of August 1 at $41.20 per ton. This is also a slight increase from the four-year low $40.45 reached in the seven days prior to July 4.
China and India, the two largest coal importers, are largely responsible for the relative weakness of the lower-quality coal.
Kpler reports that China's seaborne thermal coal imports rose from 18.21 millions to 22,78 million tons during July.
It's important to note that the imports in June were at a low of three years and the arrivals in July were also lower than the 26,99 million tons for the same month 2024.
Kpler data shows that China's seaborne thermal imports from China have fallen 17.1% since the same period in 2025.
China's import demand has been reduced by a combination of a rising domestic coal production, which increased 5% during the first half 2025 and generating more electricity from renewable sources.
The decline in coal-fired power generation in India is also due to renewables. According to official data, coal-fired power production dropped by nearly 3% during the first half 2025 while renewables grew by 24.4%.
Kpler reports that India's thermal coal imports by sea fell to 11,51 million tons from 13,93 million tons in June. This is the lowest month since November of last year.
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These are the views of a columnist who writes for.
(source: Reuters)
