China's coking coal market witnessed a supply shortfall in 2025. While the first half-year supply outpaced demand, the second half experienced supply contractions due to mine operation disruptions by the anti-involution drive and overproduction inspections.

Total coking coal demand reached 599.09 million tonnes last year, up 1.92% year on year, Sxcoal data showed. This was 2.12 million tonnes higher than the combined domestic supply and net imports totaling 596.97 million tonnes, which inched up 0.41% on the year.

Monthly consumption peaked in December at 51.84 million tonnes, driven by active downstream restocking amid higher coke output.

Domestic washed coking coal production amounted to 479.52 million tonnes in 2025, up 1.37% from a year ago, as per Sxcoal data. Coal-rich Shanxi province remained the top supplier, contributing nearly half of the total washed coking coal output.

Net imports (imports minus exports) remained a critical component of China's coking coal supply, reaching 117.45 million tonnes in the past year, down 3.35% from the year prior.

The country's total coking coal imports reached 118.63 million tonnes from January to December, reflecting a 2.97% drop, according to the latest Chinese customs data, comprising 58.55 million tonnes of seaborne shipments.

Imports from Mongolia and Russia made up 50.6% (60.07 Mt, 5.78% YoY) and 27.6% (32.76 Mt, 7.38% YoY) of the total, respectively, while third-ranked Canadian coal imports amounted to 10.8 million tonnes, up 19.63% from the previous year.

In contrast, coking coal intakes from Australia and the U.S. decreased notably by 14.51% and 72.74% year on year, respectively, hitting 8.86 million tonnes (7.5% of China's total) and 2.91 million tonnes (2.5%), respectively.

China's dual carbon goals continue to shape the coal sector. While coking coal is not subject to direct caps like thermal coal, stricter environmental requirements and resource consolidation policies are placing pressure on marginal producers.

On the import front, domestic demand and production, as well as policy changes, are affecting sourcing decisions. Geopolitically, shifting trade relationships, particularly with Mongolia, Russia, Australia, and the U.S., are reshaping the import landscape.