Japan's coal imports fell for the third straight month in April, according to data from the Ministry of Finance Japan. While year-on-year gains persisted, the growth rate narrowed compared to March.

The country imported 12.12 million tonnes of coal in April, down 5.78% month on month (MoM), extending the downtrend so far in 2026, according to the latest data from Japan's Ministry of Finance.

Imports edged up 0.77% year on year (YoY), carrying on the upward trend since the start of 2026, though the growth rate narrowed by 3.88 percentage points.

The imports were worth 292.99 billion yen ($1.84 billion), up 18.46% year on year and 4.14% month on month. That put the average price of coal imports in April at 24,176.39 yen/t, up 17.55% on the year and 10.54% on the month.

Japan's power demand typically enters a relatively mild period in April-May, as the heating season has ended and the summer peak has yet to arrive, resulting in a seasonal slowdown in coal imports.

Geopolitical tensions in the Middle East closed the Hormuz Strait, cutting a significant portion of the liquefied natural gas supply and prompting power companies to increase coal purchases to compensate. However, this gas-to-coal demand stabilized after several months of concentrated procurement.

The year-on-year uptrend in Japan's coal imports this year partly reflects the energy market adjustments caused by geopolitical tensions. In response, the government loosened operational restrictions for some coal-fired power plants, allowing them to increase generation loads.

In April, gas-fired power generation fell to two-year lows, while coal-fired output rose 11.1% year on year, marking the steepest gain in one year. Tight LNG supply continued to push fuel switching, lending support to coal imports.

In the first four months, total coal imports in Japan reached 54.32 million tonnes, up 2.33% year on year, while import value fell 1.44% to 1.19 trillion yen, reflecting a 3.68% decline in average prices to 21,987 yen/t.

Australia remained Japan's largest supplier, accounting for 66.2% of April imports with 8.02 million tonnes, up 0.89% year on year but down 6.17% from a month earlier. The import value for Australian coal amounted to 199.68 billion yen, with an average price of 24,886.19 yen/t, up 24.27% YoY and 10.62% MoM.

Imports from Indonesia totaled 1.81 million tonnes, remaining roughly flat compared to a year earlier but falling 21.18% month on month, marking a share of 15%. The import value totaled 39.65 billion yen, with the average import price at 21,861.4 yen/t, up 18.75% YoY and 13.12% MoM.

Imports from the U.S. ranked third in April, totaling 868,500 tonnes, up 17.24% year on year yet down 5.8% month on month, accounting for 7.2% of total imports. Import value reached 19.5 billion yen, with the average price dipping 0.91% year on year but climbing 15.86% from March to 22,456.05 yen/t.

Shipments from Canada declined to 704,000 tonnes, diving 40.2% year on year while growing 32.09% month on month, representing 5.8% of imports. Import value stood at 18.67 billion yen, with the average price ticking up 0.72% year on year but easing 1.52% month on month to 26,518.63 yen/t.

Imports from South Africa totaled 296,000 tonnes, surging 120% year on year while declining 23.85% month on month, accounting for 2.4% of the total. Import value reached 5.81 billion yen, with the average price rising 16.1% year on year and 3.44% month on month to 19,623.15 yen/t.

By coal type, Japan's thermal coal imports reached 7.1 million tonnes in April, down 4.53% year on year and 16.37% from the previous month, accounting for 58.2% of total imports. Import value stood at 148.27 billion yen, with the average price rising 15.25% year on year and 7.42% on the month to 20,877.33 yen/t.

Coking coal imports rose 11.8% year on year and 15.71% on the month to 4.77 million tonnes, representing 39.1% of total imports. Import value reached 137.49 billion yen, with the average price increasing 9.02% from March and 17.91% from a year earlier to 28,826.19 yen/t.

Anthracite imports totaled 246,800 tonnes, down 23.06% year on year and 0.44% month on month, accounting for 2% of total imports, while lignite imports totaled only 600 tonnes, down 15.8% YoY while up 20.73% MoM.

While supply gaps in the LNG market driven by disruptions at the Strait of Hormuz remained, gas prices retreated from recent highs. This eroded coal's price advantage and could cap further import growth.

Although Japan is in its power demand off-peak season, the country has relaxed operating restrictions on coal-fired units to offset reduced gas supply. Meanwhile, pre-peak season stockpiling, coupled with rising power use and lower renewable energy output amid the approaching El Nino, lifted coal demand.

Japan imported 79,400 tonnes of coke in April, down 18.51% year on year and 5.67% month on month. Import value stood at 3.57 billion yen, with the average price increasing 8.33% year on year and 12.97% month on month to 45,027.32 yen/t. About 91.2% of coke imports originated from China.

In January-April, coke imports totaled 332,200 tonnes, down 5.96% year on year, with import value falling 12.1% to 13.46 billion yen.