Japan's coal imports fell both month on month and year on year in August 2026, reversing the rebound seen in the previous month, as reduced power demand amid milder summer weather curbed spot buying interest, data from the Ministry of Finance showed.

Imports in August totaled 14.85 million tonnes, down 8.22% year on year, easing from July's growth pace. The figure edged down 0.14% month on month, failing to sustain the earlier upward momentum.

Import value reached 387.37 billion yen ($2.45 billion), up 23.07% year on year and down 1.95% month on month. The average import price stood at 26,082.18 yen/t, up 34.10% year on year and down 1.81% from the previous month.

Temperatures in Japan ran milder than seasonal norms in August, dampening power demand and capping power sector coal burn. As cooling demand failed to materialize, Japan's coal burn edged lower for a second consecutive month in August, dragging down seaborne coal arrivals in the month.

Nevertheless, amid mounting global LNG supply risks and surging gas prices, gas-to-coal switching continued to offer a clear cost advantage for Japanese utilities with spare coal burn capacity. This economic incentive provided structural, baseline support to purchases of specific grades, notably for high grade Australian thermal coal.

For January-August, Japan's cumulative coal imports reached 107.35 million tonnes, up 1.28% year on year. Import value totaled 2.57 trillion yen, up 15.38%, with the average import price at 23,956.96 yen/t, up 13.92% from the year-ago period.

By origin, Australia remained Japan's largest coal supplier, delivering 9.92 million tonnes, down 13% year on year and 3.78% month on month. The volume accounted for 66.78% of Japan's total coal imports, roughly flat from July. Import value from Australia stood at 265.59 billion yen, with an average price of 26,777.37 yen/t, up 36.45% year on year but down 0.31% month on month.

Indonesia was the second-largest supplier, shipping 2.56 million tonnes of coal to Japan, down 0.96% year on year surging 44.34% month on month, accounting for 17.24% of total. Import value stood at 61.17 billion yen, with an average price of 23,898.25 yen/t, up 33.76% year on year but down 0.91% month on month.

The U.S. ranked third, supplying 699,600 tonnes, down 23.37% year on year and 34.69% month on month, representing 4.71% of total. Import value stood at 17.1 billion yen, with an average price of 24,445.86 yen/t, up 22.26% year on year and down 3.38% month on month.

Japan imported 674,900 tonnes of coal from Canada, down 11.14% year on year and 35.29% month on month, taking up 4.54% of the total. Import value reached 17.89 billion yen, with the average price at 26,505.96 yen/t, up 20.95% year on year and down 10.76% from July.

Imports from South Africa reached 404,000 tonnes, surging 427.16% year on year and climbing 45.67% month on month, making up 2.72% of total. Import value totaled 9.25 billion yen, with an average price of 22,908.00 yen/t, up 39.38% year on year and down 7.81% month on month.

By coal type, thermal coal imports totaled 9.09 million tonnes in August, down 13.57% year on year but up 3.20% month on month, accounting for 61.22% of Japan's total coal intake. Import value reached 216.98 billion yen, with an average price of 23,864.42 yen/t, up 33.56% year on year and down 1.39% month on month.

Coking coal imports stood at 5.28 million tonnes, down 1.37% year on year and 5.9% month on month, representing 35.57% of total receipts. Import value was 155.98 billion yen, with an average price of 29,522.92 yen/t, up 32.16% year on year and down 1.35% month on month.

Anthracite imports reached 475,900 tonnes, up 55.68% year on year and 6.44% month on month, accounting for 3.2% of the total. Lignite imports stood at 400 tonnes, down 21.93% year on year and 44.65% month on month.

Japan imported 105,700 tonnes of coke in August, up 4.03% year on year and surging 70.31% month on month. Import value totaled 4.23 billion yen, with an average price of 39,961.71 yen/t, up 24.18% year on year and down 24.88% month on month. Mainland China supplied 97.41% of Japan's coke imports in August, at 103,000 tonnes.

For January-August, Japan's cumulative coke imports reached 665,200 tonnes, down 7.08% year on year, while total import value rose 2.39% to 28.08 billion yen.