China's coal imports fell in April, following a record-breaking first quarter that defied widespread expectations of a slowdown. Imports totaled 33.08 million tonnes, down 12.54% from a year earlier and 15.3% below March levels, showed the latest data from the General Administration of Customs on May 9.

The declines came amid unfavorable import prices, reduced export supplies, strong domestic output, and seasonal growth in clean energy generation.

Seaborne coal prices remained higher than domestic supplies last month. A surge in global energy costs, rising freight rates and tighter availability of key export grades pushed landed costs well above the relatively stable domestic market.

Supply from two of China's biggest sources also weakened. Indonesia, the top supplier of thermal coal, has been grappling with domestic policy constraints that curtailed exports and lifted costs, leading to a sharp year-on-year drop in shipments to China.

Russia's seaborne coal exports fell 10.34% year on year last month, with flows to China's mainland slumping 33.59% from a year ago and 4.84% from March, Kpler's vessel-tracking data showed. Russia's rail coal shipments for China-bound export rose 6.71% on the year but fell 1.54% month on month in April, according to Metals & Mining Intelligence.

On the domestic side, ample inventories and tepid demand blunted any urgency to import. A sharper focus on energy self-sufficiency and steady deliveries of long-term contract coal have supported power plant stockpiles at relatively high levels for this time of year. With imported cargo more expensive, power utility tender activities subdued.

Moreover, seasonal softness in power consumption and a robust rebound in clean energy generation further squeezed coal's role. April falls in the traditional shoulder season for heating and cooling demand, and output from hydropower in particular improved from a year earlier, eating into the market share of thermal generation.

Looking ahead, ongoing instability in the Middle East continues to constrain international supply, while elevated oil prices threaten to disrupt production and logistics in diesel-dependent regions such as Australia and Indonesia. Meanwhile, Indonesian miners are still awaiting the completion of RKAB approvals. A shift from gas-fired generation back to coal in some regions, together with early summer stock-building in Japan, South Korea and Europe, is diverting supplies of high-CV cargoes.

Under these conditions, landed prices of imported coal are expected to stay firm in China. Coal imports are likely to see a year-on-year drop in May, though seasonal pre-peak restocking push and elevated truck clearance volumes of Mongolian coal may lift the monthly tally slightly above the April level.